What form of guaranty must each Cicis transferee and their owners execute and deliver to Cicis?

According to Cicis's 2025 Franchise Disclosure Document, each transferee and all of its direct and indirect owners, including their spouses, must execute and deliver to Cicis a copy of Cicis's then-current form of Guaranty. This Guaranty obligates them to be personally bound, jointly and severally, by all provisions of the Franchise Agreement. At Cicis's discretion, they may instead be required to execute the then-current form of Area Development Agreement and any other ancillary agreements.

This requirement ensures that Cicis has recourse to the personal assets of the transferee and their owners should the franchise fail to meet its obligations. The "jointly and severally" clause means that each individual is responsible for the entire debt or obligation, not just a portion. Cicis can pursue any one or all of the guarantors for the full amount owed.

For a prospective Cicis franchisee, this means that before transferring ownership, the new owner and their stakeholders will need to sign a legally binding document accepting full responsibility for the franchise's performance. This is a standard practice in franchising, as it protects the franchisor's interests and ensures that the new ownership is fully committed to upholding the franchise agreement. The transferee should carefully review the current form of Guaranty to understand the full scope of their obligations before proceeding with the transfer.