Following the termination or expiration of a Cicis franchise agreement, what are franchisees required to refrain from doing that could harm the goodwill of the Cicis Marks or System?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
f terminating this Agreement terminate or modify any territorial rights or protection granted to you in Section 2.B. of this Agreement, reduce the size of your Development Area, reduce the number of Restaurants listed in the Development Schedule, and/or pursue any other remedy we may have at law or in equity. Our exercise of any of our options under this Section will not constitute a waiver by us to exercise our option to terminate this Agreement at any time with respect to a subsequent event of default of a similar or different nature and will not obligate us to refund any portion of the Development Fee.
7. RIGHTS AND OBLIGATIONS ON TERMINATION OR EXPIRATION OF THIS AGREEMENT.
A. YOUR OBLIGATIONS.
You and, as applicable, your owners and all such other persons or Business Entities who are bound under the terms of this Agreement must immediately upon the expiration or termination of this Agreement, cease to directly or indirectly exercise or attempt to exercise any of the rights granted to you under this Agreement, comply with all obligations that either expressly survive or by their nature are intended to survive the expiration or termination of this Agreement, and refrain from interfering or attempting to interfere with our or our Affiliat
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, after the termination or expiration of the franchise agreement, franchisees and their owners must immediately cease exercising any rights granted under the agreement. They must also comply with all obligations that survive the termination, whether explicitly stated or implied by their nature.
Specifically, franchisees must not interfere with Cicis's relationships with vendors, franchisees, or consultants. Furthermore, they are prohibited from engaging in any activity that could harm the goodwill of the Cicis Marks or the System.
These obligations extend to non-disparagement, non-competition, non-interference, confidentiality, and indemnification, ensuring that the franchisee does not take actions that could negatively impact the Cicis brand or its operations after the agreement ends. This is a standard practice in franchising to protect the brand and its network of franchisees.