Who are the 'Guarantors' in the context of the Cicis Reopen Incentive Program Addendum?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
On Smile LLC ("we"), the "Franchisee" identified below ("you"), and your owners who have guaranteed your performance under the Franchise Agreement (collectively, the "Guarantors" and, together with us and you, the "Parties") execute this Reopen Incentive Program Addendum (the "Addendum") to supplement and amend that certain Franchise Agreement identified on Attachment A hereto (as it might have previously been amended, the "Franchise Agreement"). The Effective Date of this Addendum is the date on which we sign below. Capitalized terms used but not defined in this Addendum have the meanings given them in the Franchise Agreement. For valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, specifically within the Reopen Incentive Program Addendum to the Franchise Agreement, the 'Guarantors' are defined as the franchisee's owners who have guaranteed the franchisee's performance under the Franchise Agreement. These individuals or entities, along with Cicis and the franchisee, are the parties executing the Reopen Incentive Program Addendum.
This means that if a franchisee's owners have provided a guarantee for the franchisee's obligations under the Franchise Agreement, they are considered Guarantors under this addendum. Their role is to ensure that the franchisee meets its obligations, and they may be held liable if the franchisee fails to do so.
For a prospective Cicis franchisee, this definition is important because it clarifies who is bound by the terms of the Reopen Incentive Program Addendum. If the franchisee is owned by multiple individuals or entities, those who have provided guarantees will be considered Guarantors and will be directly responsible for the franchisee's performance. This arrangement is typical in franchising, as franchisors often seek guarantees to ensure financial stability and operational compliance.
It is crucial for potential franchisees and their owners to fully understand the implications of providing a guarantee, as it can expose their personal assets to risk if the franchise does not perform as expected. Franchisees should seek legal counsel to fully understand their obligations and the potential liabilities associated with the Reopen Incentive Program Addendum and the Franchise Agreement.