What elements are included in the 'Lease' section of the Cicis franchise agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
art of, the Lease. WHEREAS, Franchisee has executed or intends to execute a Franchise Agreement (the "Franchise Agreement") with On Smile LLC, a Delaware limited liability company (along with any successor franchisor of CiCi's restaurants ("Franchisor"), for 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:
-
- 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.
-
- 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. Franchisee may operate CiCi's Restaurants at any other location without Landlord's approval.
-
- Franchisor, its personnel or agents, for a period of up to thirty (30) days after the expiration or sooner termination of the Lease or the Franchise Agreement, may enter the Premises for itself or on behalf of Franchisee to de-identify the Premises as a Restaurant, which may include the removal of signs, decor and materials displaying any marks, designs or logos owned by Franchisor or its affiliates. This right includes the right to remove exterior signs and awnings from the Premises and any Shopping Center pylon or monument sign, interior signs, decor items, and materials displaying any marks, designs, or logos owned by Franchisor and all other items identifying the Premises as a Cicis Restaurant. In addition, Franchisor may make such other modifications (such as repainting) as are reasonably necessary to protect the Cicis system signs, marks, and intellectual property rights.
-
- If Franchisee has an obligation to continuously operate its business at the Premises, Franchisee may cease operating for up to sixty (60) days, from time to time, to perform repairs, enhancements or renovations, as required by the Franchise Agreement.
-
- Notwithstanding any provision herein to the contrary, Franchisee or Franchisor (should it assume the Lease in accordance with Paragraph 10(c) below) shall have the absolute right, whether or not
the Franchisee is in default under the Lease, upon thirty (30) days prior written notice to Landlord, to sublet, assign or otherwise transfer its interest in the Lease to Franchisor or Franchisor's affiliate, as the case may be, or to any entity with which Franchisor may merge or consolidate, or to any person or entity which is an authorized franchisee of Franchisor (each, a "Permitted Assignee"), without Landlord's consent. Following such an assignment, a Permitted Assignee also may sublet, assign or otherwise transfer its interest in the Lease to another Permitted Assignee without the consent of Landlord. There will be no fee or expense charged in connection with such transfers.
Landlord and Franchisee acknowledge and agree that a Permitted Assignee will assume all of Franchisee's obligations under the Lease arising as a result of events, acts or omissions occurring from and after the date of assignment.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, several elements pertain to the lease agreement for a Cicis restaurant. Cicis requires approval of the premises and the lease form, maintaining rights as a third-party beneficiary to enforce the lease rider. The franchisee is restricted to operating solely a Cicis restaurant on the premises, with allowances for carry-out, curbside pickup, video games, and vending machines.
Upon lease expiration or termination, Cicis has the right to de-identify the premises, removing any signs or materials that display Cicis's branding. The franchisee can temporarily cease operations for up to 60 days for repairs or renovations required by the Franchise Agreement. The franchisee must provide Cicis with a copy of any proposed lease or contract of sale and obtain Cicis's approval before signing. A lease rider, in the form attached as Attachment C, must be incorporated into the lease.
Furthermore, the franchisee may reserve up to four parking spaces for take-out customers. The landlord is obligated to provide Cicis with copies of any lease modifications or renewals. The franchisee has the exclusive right to sell pizza for consumption on or off the premises within the shopping center, subject to existing lease agreements. In case of conflicts between the lease and the rider, the rider's terms will prevail. Cicis also requires that if the location is owned by a related party, a formal lease with arms-length terms must be in place, and the franchisee must undergo a lease compliance review by an attorney approved by Cicis, bearing the associated legal fees.
These stipulations ensure that Cicis maintains control over brand representation and operational standards, even concerning the leased property. Prospective franchisees should carefully review Attachment C and understand the implications of these lease requirements, including potential costs for legal reviews and the restrictions on premises use.