Is a Cicis franchisee's financial capacity a factor in Cicis entering into the franchise agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
You and, if applicable, your Owners have requested that we grant you a license to use the System to develop and own a Cicis Restaurant and, in support of your request, have provided us with certain supporting materials (the "Application Materials"). We are willing to grant your request on the terms and conditions set forth in this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Cicis requires potential franchisees to submit supporting materials, referred to as "Application Materials," as part of their request to be granted a franchise. These materials are considered when Cicis decides whether to grant the franchise. While the FDD mentions the franchisee's request and the submission of supporting materials, it does not explicitly state that financial capacity is a specific factor Cicis considers.
The Franchise Agreement includes a Guaranty and Assumption of Obligations, which may require individuals to guarantee the franchisee's obligations. This suggests that the financial stability and commitment of the franchisee (and potentially their owners) are important to Cicis. The FDD also states that buying a franchise is not a guarantee of success and that the success or failure of the franchise is subject to many variables such as the franchisee's skills and abilities.
While the FDD does not directly confirm that financial capacity is a factor, the requirement for Application Materials and the Guaranty suggest that Cicis assesses a franchisee's capabilities, which likely includes a review of their financial resources. A prospective franchisee should directly ask Cicis what specific financial information or documentation is required in the Application Materials and how this information is used in the evaluation process.