What must a Cicis franchisee do if there are any modifications to their formation or governing documents?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) you have provided us with copies of your formation and governing documents and any other documents we reasonably request and will provide us with copies of any modifications thereto;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee is not a natural person, they must provide Cicis with copies of their formation and governing documents, as well as any modifications made to them. This ensures Cicis is aware of the legal structure and operational scope of its franchisees.
This requirement allows Cicis to monitor whether the franchisee's activities remain exclusively focused on operating the Cicis restaurant, unless Cicis provides written consent otherwise. It also confirms that the franchisee has the power and authorization to execute and perform the Franchise Agreement according to their governing documents.
Furthermore, the franchisee must maintain a current list of all owners of record and beneficial owners of any voting securities or ownership, making it available to Cicis upon request. This transparency helps Cicis track ownership changes and ensure compliance with the franchise agreement's restrictions on assignments or transfers. The agreement also stipulates that any agreements among the franchisee's owners must require consent to transfer ownership interests to Cicis or its designee if Cicis exercises its rights of first refusal or purchase options.