What must a Cicis franchisee do with all sums owed to Cicis and its affiliates upon termination?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- E.
Pay Amounts Owed.
You must promptly pay all sums owing to us and our subsidiaries or affiliates, including all damages, costs, and expenses, including reasonable attorneys' fees, we incur as a result of any default by you, which obligation will give rise to and remain, until paid in full, a lien in our favor against any and all of the personal property, furnishings, equipment, signs, fixtures, and inventory owned by you and on the premises operated hereunder at the time of default.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, upon termination of the Franchise Agreement, a franchisee must promptly pay all sums owed to Cicis and its subsidiaries or affiliates. This includes all damages, costs, and expenses, including reasonable attorneys' fees, that Cicis incurs as a result of any default by the franchisee.
This obligation creates a lien in Cicis's favor against any and all of the franchisee's personal property, furnishings, equipment, signs, fixtures, and inventory owned by the franchisee and on the premises operated at the time of default. This lien remains in effect until all outstanding amounts are paid in full.
In practical terms, this means that if a Cicis franchise is terminated, the franchisee is legally obligated to settle all outstanding debts with Cicis. Failure to do so could result in Cicis placing a lien on the franchisee's business assets, potentially leading to seizure and liquidation of those assets to cover the debt. This is a standard clause in franchise agreements to protect the franchisor's financial interests.