What documents must a Cicis franchisee deliver to perfect Cicis' title and possession of the Option Assets?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) For each of the Option Assets, you will deliver to us in a form satisfactory to us, such warranties, deeds, releases of lien, bills of sale, assignments, and such other documents and instruments we deem necessary in order to perfect our title and possession of them and to meet the requirements of all tax and government authorities.
If, at the time of closing, you have not obtained all of these certificates and other documents, we may, in our sole discretion, place the purchase price in escrow pending issuance of any required certificates or documents.
- (6) The time for closing of the purchase of the Option Assets will be a date not later than 30 days after the purchase price is determined as described above unless the parties mutually agree to designate another date; provide, however, that if the Option Assets include only the premises lease and/or equipment leases, the time for closing on the assignment of those leases will be a date no later than 10 days after delivery of our Option Notice.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, if Cicis exercises its option to acquire certain assets from a franchisee, the franchisee must deliver specific documents to ensure Cicis' clear ownership and possession of those assets. These assets, referred to as "Option Assets," can include the location's lease, equipment, transferable permits/licenses, and physical assets like furnishings and inventory.
The documents required from the franchisee include warranties, deeds, releases of lien, bills of sale, assignments, and any other documents or instruments that Cicis deems necessary. These documents must be in a form satisfactory to Cicis. The purpose of these documents is to perfect Cicis' title and possession of the Option Assets and to meet the requirements of all tax and government authorities.
If the franchisee has not obtained all necessary certificates and documents at the time of closing, Cicis has the discretion to place the purchase price in escrow until these items are secured. The closing date for the purchase of Option Assets is set no later than 30 days after the purchase price is determined, unless both parties agree to an alternative date. However, if the Option Assets only include the premises lease and/or equipment leases, the closing date for the assignment of those leases will be no later than 10 days after Cicis delivers its Option Notice.