Who determines permanent disability for a Cicis franchisee or managing owner, and who pays for the examination?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) In case of your or your Managing Owner's death, your or their interests, as applicable, in you, this Agreement and your Restaurant must be transferred to a third party we approve within 12 months after the date of death or permanent disability. If you or, as applicable, your Managing Owner should become permanently disabled, we may, in our sole discretion, require such interests to be transferred to a third party in accordance with the conditions described in this Section 13.D within six (6) months after notice to you. "Permanent disability" means any physical, emotional, or mental injury, illness, or incapacity which would prevent a person from performing the obligations set forth in this Agreement or in the guaranty made part of this Agreement for at least 90 consecutive days and from which condition recovery within 90 days from the date of determination of disability is unlikely. Permanent disability will be determined by a licensed practicing physician we select (and at our costs), upon examination of the person; or if the person
refuses to submit to an examination, then such person automatically will be deemed permanently disabled as of the date of such refusal for the purpose of this Section 13.D.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the determination of permanent disability for a franchisee or their managing owner is made by a licensed practicing physician selected by Cicis. The FDD defines "permanent disability" as a physical, emotional, or mental condition preventing the person from fulfilling their obligations under the Franchise Agreement or guaranty for at least 90 consecutive days, with recovery within 90 days being unlikely.
The cost of the examination by the physician selected by Cicis is borne by Cicis. However, if the franchisee or managing owner refuses to submit to the examination, they will automatically be deemed permanently disabled from the date of refusal for the purposes of the agreement.
This clause protects Cicis by ensuring a consistent and objective assessment of disability, while also placing the financial burden of the examination on Cicis. This arrangement could be beneficial to the franchisee, as they do not have to pay for the examination to determine disability. However, the franchisee must agree to the examination to avoid automatic classification as permanently disabled.