What is the effect of the amendment on the franchisee's obligation to comply with the New Franchise Agreement for Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
at by their nature survive termination (such as, [Section 15 (Indemnification)]); provided, however, that because you will continue operating the Restaurant after the expiration of the Original Franchise Agreement, we waive your obligation to satisfy the post-term obligations set forth in [Section 18 (Post-Termination)] of the Original Franchise Agreement.
2. Amendment to New Franchise Agreement.
A. Development of Restaurant. You and we agree that, as of the Effective Date, all the provisions in the New Franchise Agreement that pertain to the initial development of the Restaurant, (including, without limitation, (i) identification and approval of the Location of the Restaurant and the development and opening of your Restaurant as set forth in Section 2, and (ii) our obligation to provide, and your obligation to complete, the initial training as set forth in Section 5.F.), are deemed to have been satisfied but only to the extent that such obligations apply
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to the initial development of the Restaurant. You agree to comply with all of your obligations under the New Franchise Agreement (including, without limitation, Section 2 and Section 5.F. thereof) as they apply to the continuation of the operation of the Restaurant.
- B. Initial Franchise Fee & Initial Training Fee. Section 4.A. (Initial Franchise Fee) and Section 4.B. (Initial Training Fee) of the New Franchise Agreement are deleted in their entirety.
- C. Grand Opening. Section 7.E. (Grand Opening) of the New Franchise Agreement is deleted in its entirety.
- D. Other Conditions. You agree to remodel and refurbish the Restaurant and its premises as necessary to comply with the System Standards, including, without limitation, those items reflected on Exhibit A hereto. All such required remodel and refurbishment must be completed by not later than the date shown on Exhibit A and must be demonstrated and verified to us by digital photographs and/or video by not later than that date. [Note: Delete when not applicable.]
- E. Release.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the amendment to the New Franchise Agreement primarily addresses the transition from an existing Original Franchise Agreement. The franchisee is still obligated to comply with the New Franchise Agreement, but certain initial development obligations are considered satisfied. This acknowledges that the restaurant is already operational.
Specifically, provisions in the New Franchise Agreement related to the initial development of the restaurant, such as site selection (Section 2) and initial training (Section 5.F), are deemed fulfilled to the extent they pertain to the initial setup. However, the franchisee must still adhere to all obligations under the New Franchise Agreement, including Sections 2 and 5.F, as they relate to the ongoing operation of the restaurant.
Furthermore, certain sections of the New Franchise Agreement are deleted entirely, including Section 4.A (Initial Franchise Fee), Section 4.B (Initial Training Fee), and Section 7.E (Grand Opening). The franchisee may also be required to remodel and refurbish the restaurant to meet current system standards, as outlined in Exhibit A, with a deadline for completion and verification via digital photos or video. In case of conflicts between the New Franchise Agreement and the amendment, the terms of the amendment will take precedence.