Does the Cicis franchise agreement specify who is responsible for the costs associated with the transfer of the franchise after death or disability?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
nd otherwise upgrade your Restaurant and, if applicable, any Restaurant delivery vehicles to conform to the then current System Standards, and will complete the upgrading and other requirements within the time period we reasonably specify;
- (h) the transferor will remain liable for all of its obligations to us in connection with this Agreement and your Restaurant incurred prior to the effective date of the transfer and will execute any and all instruments we reasonably request to evidence such liability;
- (i) at the transferee's expense, the transferee and all Persons required under the applicable franchise agreement to have completed our training programs must complete any such training programs upon such terms and conditions as we may reasonably require;
- (j) you will pay us a transfer fee of $7,500, plus such amount as is necessary to reimburse us for our reasonable out of pocket costs and expenses associated with the Transfer;
- (k) you have provided us executed versions of any relevant documents to effect the Transfer, and all other information we request about the proposed Transfer, transferee, and its owners, and such Transfer meets all of our requirements. If the transferor offers the transferee financing for any part of the purchase price, you and your Owners hereby agree that all of the transferee's obligations under promissory notes, agreements, or security interests reserved in your Restaurant are subordinate to the transferee's obligation to pay fees and other amounts due to us, our affiliates, and third party vendors and otherwise to comply with this Agreement (or any applicable franchise agreement replacing this Agreement);
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, in the event of death or permanent disability necessitating a franchise transfer, the transferee bears certain expenses. Specifically, the transferee is responsible for the costs associated with completing required training programs. Additionally, the franchisee will pay Cicis a transfer fee of $7,500, along with reimbursing Cicis for reasonable out-of-pocket costs related to the transfer.
Furthermore, the transferee is responsible for the expense of renovating, modernizing, and upgrading the restaurant to meet the then-current System Standards. This includes any necessary upgrades to restaurant delivery vehicles. The Cicis franchise agreement stipulates that the transferor will remain liable for all obligations to Cicis incurred before the transfer date and must execute any documents to evidence this liability.
In cases where a third party offers consideration other than cash, Cicis has the option to purchase the interest for a reasonable cash equivalent. If an agreement on the cash equivalent cannot be reached, two appraisers will determine the amount, with each party selecting one appraiser. Each party will bear their own legal and appraisal costs and split the appraisal fees. These stipulations ensure that Cicis maintains control over franchise standards and financial obligations during and after the transfer process.