Does the Cicis franchise agreement specify that the Managing Owner's interest in the franchise must remain free of voting agreements?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as may otherwise be provided in this Agreement, the Managing Owner's interest in you will be and will remain free of any pledge, mortgage, hypothecation, lien, charge, encumbrance, voting agreement, proxy, security interest, or purchase right or options.
- (1) Prior to the execution of this Agreement, you must designate and at all times maintain an Owner who is a natural person approved by us to serve as your Managing Owner ("Managing Owner"), with primary responsibility for the supervision of your activities under this Agreement.
The Managing Owner must own and maintain at least 25% of the direct ownership interests in you.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Managing Owner's interest in the franchise must remain free of any voting agreements. The Managing Owner has primary responsibility for supervising activities under the Franchise Agreement. The Managing Owner must own and maintain at least 25% of the direct ownership interests in the franchise.
This requirement ensures that the Managing Owner's decisions are not influenced or controlled by outside parties through voting agreements, proxies, or other arrangements. This provision helps Cicis maintain consistent brand standards and operational control across all franchise locations.
This stipulation is designed to protect the integrity and management of the Cicis franchise by preventing external influences from dictating operational decisions. A prospective franchisee should understand that maintaining control over their ownership interest is a condition of the franchise agreement.