Does the Cicis Franchise Agreement grant any rights or remedies to third-party beneficiaries?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW THEREFORE, in consideration of mutual covenants set forth herein, the execution and delivery of the Lease, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Franchisee hereby agree as follows:
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- The effectiveness of the Lease is contingent upon Franchisor's approval of the Premises and the form of the Lease. To the extent permitted under applicable law, Franchisor is a third-party beneficiary of all of the rights and privileges set forth in this Rider, and it is intended by Landlord and Tenant that Franchisor will be entitled to enforce this Rider, provided, however, Franchisor does not assume any duties, obligations, or liabilities under this Rider or the Lease unless agreed to in writing by Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the Franchise Agreement specifies conditions under which third parties may benefit. Specifically, in the context of a lease agreement for the premises of a Cicis restaurant, the document states that Cicis, the franchisor, is considered a third-party beneficiary with certain rights and privileges.
This third-party beneficiary status allows Cicis to enforce specific provisions of the lease agreement between the landlord and the franchisee. However, it's important to note that Cicis does not assume any obligations or liabilities under the lease unless explicitly agreed to in writing. This arrangement enables Cicis to protect its brand and operational standards by ensuring the premises meet their requirements and are properly maintained.
For a prospective Cicis franchisee, this clause means that the franchisor has a vested interest in the lease agreement and the franchisee's adherence to it. While this provides Cicis with certain enforcement rights, it also assures the franchisee that Cicis is committed to maintaining brand standards and has the ability to intervene if the premises are not up to par or if the lease is in jeopardy. This can be seen as a protective measure for both the franchisor and the franchisee, ensuring the Cicis brand is consistently represented.