Where in the Cicis FDD is the 'Cause defined non curable defaults' section amended?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- The "Summary" section of Item 17(h), entitled "Cause defined non curable defaults", is amended by adding the following:
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the Franchise Agreement or the Area Development Agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Item 20 includes state-specific amendments. For franchisees operating in Virginia, the "Summary" section of Item 17(h), entitled "Cause defined non curable defaults", is amended. This amendment includes a statement clarifying that it is unlawful for Cicis to cancel a franchise without reasonable cause, as per Section 13.1-564 of the Virginia Retail Franchising Act.
This amendment means that if any grounds for default or termination stated in the Franchise Agreement or the Area Development Agreement do not constitute "reasonable cause" under Virginia law, that specific provision may not be enforceable. This provides additional protection to Cicis franchisees in Virginia, ensuring that terminations must be justified under the state's franchising laws.
Prospective Cicis franchisees in Virginia should carefully review Item 17(h) and the Virginia Retail Franchising Act to understand what constitutes "reasonable cause" for termination. This knowledge can help them assess the risks and obligations associated with the franchise agreement and ensure they are aware of their rights under Virginia law.