Does Cicis have to get consent from the franchisee to transfer the Cicis system?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) the transferee must enter into a written agreement, in form and substance satisfactory to us, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the transfer, all obligations, covenants, and agreements contained in this Agreement; and, if the transferee is a legal entity, each of the transferee's owners as we designate must execute such agreement and jointly assume and guarantee the entity's performance of all such obligations, covenants, and agreements;
(e) the transferee must execute, for a term ending on the expiration date of this Agreement and with such renewal terms as may be provided by this Agreement, our thencurrent standard form of franchise agreement and all other ancillary agreements as we may require, which agreements will supersede this Agreement and its ancillary documents in all respects and the terms of which agreements may differ from the terms of this Agreement, including a higher percentage Royalty Fee and Fund Contribution or expenditure requirement; provided, however, that the transferee will not be required to pay any initial franchise fee; and, if the transferee is legal entity, such of transferee's owners as we may designate must execute such agreement and jointly assume and guarantee the entity's performance of all such obligations, covenants, and agreements;
(f) the transferee must demonstrate to our satisfaction that it meets the criteria we then consider when reviewing a prospective franchisee's application for a Franchise;
(g) the transferee, at its expense, will renovate, modernize, and otherwise upgrade your Restaurant and, if applicable, any Restaurant delivery vehicles to conform to the then current System Standards, and will complete the upgrading and other requirements within the time period we reasonably specify;
(h) the transferor will remain liable for all of its obligations to us in connection with this Agreement and your Restaurant incurred prior to the effective date of the transfer and will execute any and all instruments we reasonably request to evidence such liability;
(i) at the transferee's expense, the transferee and all Persons required under the applicable franchise agreement to have completed our training programs must complete any such training programs upon such terms and conditions as we may reasonably require;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 FDD, Cicis franchisees do not have to consent to a transfer of the Cicis system. However, if a franchisee wants to transfer their franchise to someone else, Cicis requires the transferee to meet certain conditions.
Specifically, the transferee must enter into a written agreement, satisfactory to Cicis, assuming full liability for all obligations in the franchise agreement. If the transferee is a legal entity, its owners must also execute this agreement. The transferee must also execute Cicis' then-current standard franchise agreement, which will supersede the original agreement and may have different terms, such as higher royalty fees. However, the transferee will not be required to pay an initial franchise fee. The transferee must also meet Cicis' criteria for prospective franchisees and renovate the restaurant to meet current system standards within a specified time.
Additionally, the transferor (the original franchisee) remains liable for all obligations incurred before the transfer date and must execute any instruments Cicis requests to evidence this liability. The transferee and any required personnel must also complete Cicis' training programs. These conditions ensure that any new franchisee meets Cicis' standards and maintains the integrity of the Cicis brand and system.