After the Cicis franchise agreement expires or terminates, are there any obligations that the franchisee must continue to fulfill?
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 the 2025 Cicis Franchise Disclosure Document, franchisees have obligations that continue even after the franchise agreement expires or terminates. Upon expiration or termination, the franchisee must immediately cease exercising any rights granted under the agreement. They must also comply with obligations that expressly survive or are intended to survive termination, such as non-disparagement, non-competition, non-interference, confidentiality, and indemnification.
These continuing obligations mean that a former Cicis franchisee cannot use Cicis's trademarks or systems, and they must protect confidential information. The non-compete clause prevents the franchisee from opening a competing business in the same area for a certain period, and the non-disparagement clause restricts them from making negative statements about the Cicis brand.
These obligations remain in effect until they are fully satisfied or naturally expire. This ensures the protection of Cicis's brand, trade secrets, and business relationships even after a franchise agreement ends. Franchisees and their owners are bound by these terms, highlighting the importance of understanding these post-termination responsibilities before entering into a franchise agreement with Cicis.