Who is the Cicis Franchise Agreement binding upon, besides Cicis and the franchisee?
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 Affiliates' relationships with any vendors, franchisees or consultants or engage in any other activity which might injure the goodwill of the Marks or the System.
B. CONTINUING OBLIGATIONS.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Franchise Agreement is binding upon the franchisee, Cicis, and also any owners of the franchisee's business entity. Additionally, other persons or business entities who are bound under the terms of the agreement must comply with the obligations outlined in the agreement. This includes compliance upon the expiration or termination of the agreement.
Specifically, upon termination or expiration, these bound parties must cease exercising any rights granted under the agreement, adhere to obligations that survive termination, and avoid interfering with Cicis's relationships with vendors, franchisees, or consultants. They must also avoid any actions that could harm the goodwill associated with the Cicis brand. These obligations, such as those related to non-disparagement, non-competition, confidentiality, and indemnification, remain in effect even after the agreement ends.
Furthermore, the document specifies that references to "we," "us," and "our" in the agreement include any of Cicis's affiliates with whom the franchisee deals. An "Affiliate" is defined as any person or entity directly or indirectly owned or controlled by, under common control with, or owning or controlling either Cicis or the franchisee. This broad definition extends the reach of the agreement to related entities, ensuring comprehensive compliance and protection for Cicis's interests.