What earnest money deposit is required with a bona fide offer for a Cicis franchise transfer?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
If you (or any of your owners) desire to engage in a Transfer, you (or your owners, as applicable) agree to obtain from a responsible and fully disclosed buyer, and send us, a true and complete copy of a bona fide, executed written offer (which may include a letter of intent) relating exclusively to an interest in you or in this Agreement and your Development Rights. The offer must include details of the payment terms of the proposed sale and the sources and terms of any financing for the proposed purchase price. To be a valid, bona fide offer, the entire proposed purchase price must be in a dollar amount, and the proposed buyer must submit with its offer an earnest money deposit equal to five percent (5%) or more of the offering price. The right of first refusal process will not be triggered by a proposed Transfer that would not be allowed under Sections 5.B and 5.C above.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a prospective buyer looking to make a bona fide offer must submit an earnest money deposit. This deposit must be equal to five percent (5%) or more of the total offering price. This requirement ensures that the offer is serious and that the buyer has a genuine interest in acquiring the Cicis franchise.
This earnest money deposit is a standard practice in franchise transfers, as it provides Cicis with assurance that the potential buyer is committed to the transaction. It also protects the seller, as the deposit can be forfeited if the buyer fails to complete the purchase without a valid reason. The specific terms and conditions regarding the earnest money deposit, including its refundability and potential forfeiture, would typically be outlined in the offer agreement.
It is important for a prospective Cicis franchisee to understand this requirement and factor it into their financial planning when considering a franchise transfer. They should also carefully review the offer agreement to fully understand the terms and conditions associated with the earnest money deposit. Additionally, the offer must include details of the payment terms of the proposed sale and the sources and terms of any financing for the proposed purchase price.