What is the Cicis franchisee's obligation regarding submitting information and reports?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Audits. We or our designee have the right at all reasonable times to review, audit, examine, and copy your books and records as we may require without cause or prior notice you. If any payments required to be made to us under this Agreement are delinquent, or if an inspection reveals that such payments have been understated in any way, then you will immediately pay us the amount overdue or understated upon demand with interest determined in accordance with the provisions of Section 4.G. If we decided to conduct an audit because of your failure to provide any records or reports you are required to provide us or if an audit discloses an understatement in any way of 3% or more, then you will also reimburse us for all costs and expenses connected with the audit (including reasonable accounting and attorneys' fees). These remedies will be in addition to any other remedies we may have at Law or in equity.
- D. No Waiver. You understand and agree that our receipt or acceptance of any of the statements you furnish or payments you make to us will not preclude us from questioning the correctness thereof at any time and, in the event that any inconsistencies or mistakes are discovered in such statements or payments, you will immediately rectify such inconsistencies or mistakes and make the appropriate payment.
- E. Authorization to Release Information. You hereby authorize (and agree to execute any other documents deemed necessary to effect such authorization) all banks, financial institutions, businesses, suppliers, manufacturers, contractors, vendors, and other Persons (including the providers of data warehouse services) with which you do business to disclose to us any requested financial information in their possession relating to you or your Restaurant. You also hereby authorize us to disclose data from your reports, if we determine, in our sole discretion, that such disclosure is necessary or advisable, which disclosure may include disclosure to prospective or existing franchisees or other third parties.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis has the right to review a franchisee's books and records at any time without providing a reason or prior notice. If any payments required under the Franchise Agreement are overdue, or if an inspection reveals that payments have been understated, the franchisee must immediately pay the amount due with interest as determined in Section 4.G of the agreement.
Furthermore, if Cicis conducts an audit because the franchisee failed to provide required records or reports, or if an audit reveals an understatement of 3% or more, the franchisee must reimburse Cicis for all costs associated with the audit, including accounting and attorney's fees. These remedies are in addition to any other legal or equitable remedies available to Cicis.
The FDD also states that Cicis's acceptance of any statements or payments from the franchisee does not prevent Cicis from questioning their accuracy at any time. If inconsistencies or mistakes are discovered, the franchisee must immediately correct them and make the appropriate payment. Additionally, the franchisee authorizes all banks, financial institutions, suppliers, and other entities with which they do business to disclose any requested financial information about the franchisee or their restaurant to Cicis. Cicis is also authorized to disclose data from the franchisee's reports if it deems such disclosure necessary or advisable, including to prospective or existing franchisees or other third parties.