Does the Cicis franchise agreement require franchisees to make their own independent determination as to whether they have the necessary capital?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| My decision to purchase the franchise has not been influenced by any oral representations, assurances, warranties, guarantees or promises whatsoever made by the Franchisor or any of its officers, employees or agents (including any franchise broker), including as to the likelihood of success of the franchise. | INITIAL: |
|---|---|
| I have made my own independent determination as to whether I have the capital necessary | INITIAL: |
| to fund the business and my living expenses, particularly during the start-up phase. |
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the franchise agreement includes an acknowledgement where the franchisee must confirm they have made their own independent determination regarding the capital necessary to fund the business, including living expenses, especially during the start-up phase. This acknowledgement requires the franchisee to initial, confirming their understanding and agreement.
This requirement means that Cicis wants to ensure franchisees are fully aware of the financial commitment involved and have not solely relied on projections or assurances from Cicis regarding potential profitability. It emphasizes the franchisee's responsibility to assess their own financial situation and ability to sustain the business through its initial stages.
This type of clause is common in franchise agreements. It protects Cicis from potential legal issues if a franchisee's business fails due to undercapitalization. It also encourages prospective franchisees to conduct thorough due diligence and seek professional financial advice before investing in a Cicis franchise.