Does the Cicis Franchise Disclosure Document include a 'Guarantee and Assumption of Obligations' as an attachment, and if so, what is its attachment designation?

According to Cicis's 2025 Franchise Disclosure Document, a Guaranty and Assumption of Obligations agreement is included as Attachment B to the Franchise Agreement. This agreement, referred to as the "Guaranty," must be executed by all of the franchisee's owners.

This requirement ensures that all owners of the franchise are personally liable for the franchise's obligations to Cicis. By signing the Guaranty, each owner agrees to be held responsible for the franchise's performance and adherence to the terms outlined in the Franchise Agreement. This provides Cicis with an additional layer of security, as they can pursue individual owners for any breaches or defaults by the franchise entity.

The inclusion of a Guaranty and Assumption of Obligations is a common practice in franchising. It protects the franchisor's interests by ensuring that individuals with a vested interest in the franchise's success are personally committed to upholding the agreement. Prospective Cicis franchisees should carefully review the terms of the Guaranty with their legal counsel to fully understand their obligations and potential liabilities.

Furthermore, the Franchise Agreement specifies that in the event of a transfer of ownership, the transferee must also enter into a written agreement, satisfactory to Cicis, assuming full liability for all obligations within the Franchise Agreement. If the transferee is a legal entity, its owners may also be required to execute such an agreement, jointly assuming and guaranteeing the entity's performance. This ensures that Cicis maintains a consistent level of security and commitment from all parties involved in the franchise, even if ownership changes.