Does the Cicis FDD disclose any other bankruptcy filings besides the one described in Item 4?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 4: BANKRUPTCY]
ITEM 4 BANKRUPTCY
U.S. Bankruptcy Court, Northern District of Texas (Dallas) Bankruptcy Petition: 21-30146-sgj11: On January 25, 2021, some of our current and former affiliates, namely, Cici's Holdings, Inc., Awesome Acquisition Company, CAC, CiCi Enterprises, CiCi GP, LLC, CiCi Services, JMC GP, LLC, JMC Restaurant Distribution, LP, and Pizza Parent, LLC, filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. All the debtors share our principal business address. On March 3, 2021, the court approved the debtors' and creditors' pre-packaged Plan of Reorganization, and March 10, 2021, CiCi Enterprises emerged from bankruptcy. On July 2, 2021, the bankruptcy cases against all the petitioners except Pizza Parent, LLC were closed. On August 30, 2024, the case was closed against Pizza Parent, LLC.
Other than this action, no bankruptcy is required to be disclosed in this Item.
Source: Item 4 — BANKRUPTCY (FDD page 11)
What This Means (2025 FDD)
According to the 2025 Cicis FDD, Item 4 addresses bankruptcy filings. The document details a voluntary Chapter 11 bankruptcy petition filed on January 25, 2021, by some of Cicis' current and former affiliates, including Cici's Holdings, Inc., Awesome Acquisition Company, CAC, CiCi Enterprises, CiCi GP, LLC, CiCi Services, JMC GP, LLC, JMC Restaurant Distribution, LP, and Pizza Parent, LLC. The court approved the debtors' pre-packaged Plan of Reorganization on March 3, 2021, and CiCi Enterprises emerged from bankruptcy on March 10, 2021. The bankruptcy cases against all petitioners except Pizza Parent, LLC were closed on July 2, 2021, with Pizza Parent, LLC's case closing on August 30, 2024.
Importantly, the Cicis FDD explicitly states that no other bankruptcy filings are required to be disclosed in Item 4 besides the one described. This statement provides some assurance to potential franchisees that Cicis is being transparent about its recent financial challenges and that there are no other undisclosed bankruptcy events that could affect the franchise system.
Prospective franchisees should carefully consider the implications of the disclosed bankruptcy and how it might affect the long-term stability and reputation of the Cicis brand. While the company has emerged from bankruptcy, it is essential to assess the potential risks and benefits associated with investing in a franchise that has recently undergone such a significant financial restructuring.