For a Cicis franchise transfer, what happens if the proposed transferee is a Business Entity?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you and the proposed transferee and its owners (if the transferee is a Business Entity) must provide all information and documents we request regarding the Transfer and the proposed transferee and its owners or affiliates;
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- you must pay all amounts owed to us, our Affiliates, and third-party vendors and have submitted all required reports and statements under this Agreement and any Franchise Agreement with us;
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- you and your owners must not have violated any provision of this Agreement or any other agreement with us or our Affiliates during both the 60-day period before you requested our consent to the Transfer and the period between your request and the effective date of the Transfer;
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- each transferee and all its direct and indirect owners and their respective spouses must execute and deliver to us a copy of our then current form of Guaranty undertaking personally to be bound, jointly and severally, by all provisions of this Agreement or, at our discretion, our then-current form of Area Development Agreement and any other ancillary agreements;
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- you must pay or cause to be paid to us a Transfer fee in the amount of Seven Thousand Five Hundred Dollars ($7,500), plus such amount as is necessary to reimburse us for our reasonable out of pocket costs and expenses associated with the Transfer;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if the proposed transferee is a Business Entity, the owners of that entity must provide all information and documents requested by Cicis regarding the transfer, the proposed transferee, and its owners or affiliates. Cicis requires this information to assess the proposed transfer and protect the Cicis brand and its interests in the System.
Furthermore, the transferring franchisee and the proposed Business Entity transferee must comply with all obligations under the existing agreements. The current franchisee must also ensure that all amounts owed to Cicis, its affiliates, and third-party vendors are paid, and all required reports and statements are submitted. The owners of the current franchise must not have violated any provisions of the existing agreement within 60 days before requesting the transfer or during the period between the request and the transfer's effective date.
Each transferee and all its direct and indirect owners, along with their spouses, must execute and deliver a copy of Cicis's then-current form of Guaranty, undertaking to be personally bound by all provisions of the Franchise Agreement. Additionally, the transferring franchisee must pay a transfer fee of $7,500, plus any necessary amount to reimburse Cicis for reasonable out-of-pocket costs associated with the transfer. These conditions ensure that Cicis maintains control over who operates its franchises and that the brand's standards and financial interests are protected during and after the transfer process.