Can Cicis deny a transfer of a Cicis franchise if the transferor has not satisfied all outstanding obligations to suppliers of the restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) We will not unreasonably withhold our consent to a Transfer, but we may require satisfaction of certain conditions and otherwise reasonably qualify our consent, including in respect of the following (each of which you agree is reasonable):
(a) all monies owed to us, our affiliates, and all suppliers to your Restaurant must be paid current and all other outstanding obligations to us and our affiliates arising under this Agreement or any other agreement will have been satisfied in a timely manner;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis can deny a franchise transfer if the transferor has not paid all monies owed to suppliers of the restaurant. Specifically, Cicis will not unreasonably withhold consent to a transfer, but they may require satisfaction of certain conditions.
One of the conditions that must be met is that all monies owed to Cicis, their affiliates, and all suppliers to the restaurant must be paid current. Additionally, all other outstanding obligations to Cicis and its affiliates arising under the Franchise Agreement or any other agreement must be satisfied in a timely manner.
This means a franchisee looking to transfer their Cicis franchise must ensure all financial obligations to suppliers are up to date, as well as any other debts or duties owed to Cicis itself. Failure to meet these requirements gives Cicis the right to deny the transfer.