Is the effectiveness of the lease for a Cicis franchise contingent upon Franchisor's approval of the premises and the form of the lease?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
the operation of a CiCi's restaurant ("Restaurant") at the Premises, and as a requirement thereof, the Lease must include the provisions contained in this Rider; and
WHEREAS, Landlord and Franchisee agree that the terms contained herein shall supersede any terms to the contrary set forth in the Lease;
NOW THEREFORE, in consideration of mutual covenants set forth herein, the execution and delivery of the Lease, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Franchisee hereby agree as follows:
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- The effectiveness of the Lease is contingent upon Franchisor's approval of the Premises and the form of the Lease. To the extent permitted under applicable law, Franchisor is a third-party beneficiary of all of the rights and privileges set forth in this Rider, and it is intended by Landlord and Tenant that Franchisor will be entitled to enforce this Rider, provided, however, Franchisor does not assume any duties, obligations, or liabilities under this Rider or the Lease unless agreed to in writing by Franchisor.
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- The Premises may be used only for the purpose of operating a CiCi's restaurant, with the ancillary carry-out food service, curbside pickup and use of video games and vending machines and for no other purpose.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 FDD, the effectiveness of a lease for a Cicis franchise is contingent upon Cicis's approval of both the premises and the lease form. This requirement is outlined in the Franchisee Lease Rider, which is incorporated into the lease agreement between the landlord and the franchisee.
This contingency means that a prospective Cicis franchisee cannot finalize a lease agreement without Cicis first reviewing and approving the location and the terms of the lease. This provision protects Cicis by ensuring that the location is suitable for a restaurant and that the lease terms align with Cicis's standards and requirements. Cicis retains the right to enforce the Franchisee Lease Rider, but does not assume any obligations or liabilities under the rider or the lease unless agreed to in writing by Cicis.
Furthermore, Cicis requires that franchisees provide a copy of the proposed lease for approval before signing it. Cicis will not approve any lease unless the Franchisee Lease Rider is attached to the lease. Additionally, if the location is owned by a party related to the franchisee, a formal lease with arms-length terms must be established. The franchisee is also responsible for covering the legal fees associated with Cicis's compliance review of the proposed lease, ensuring that all aspects of the lease meet Cicis's standards.
These stipulations are typical in franchising, as franchisors like Cicis want to ensure that franchise locations meet specific criteria to maintain brand consistency and operational standards. By maintaining control over site selection and lease terms, Cicis aims to minimize risks and ensure that franchisees operate in suitable environments that contribute to the overall success of the Cicis brand.