Is the Guaranty of Performance issued by CiCi Services included as an exhibit in the Cicis FDD?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached as Exhibit G are (i) the combined audit report for us and our affiliate, CiCi Services Company, LLC, which includes our and CiCi Services Company, LLC's combined balance sheet as of December 31, 2024 and 2023, and the related combined statements of income, changes in members' capital and cash flows for the years then ended on December 31, 2024 December 31, 2023, December 31, 2022, and (ii) the Guaranty of Performance issued by our affiliate, CiCi Services.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 64)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the Guaranty of Performance issued by CiCi Services is included as an exhibit. Specifically, Item 21 indicates that the Guaranty of Performance issued by CiCi Services is attached as Exhibit G. This guaranty ensures that CiCi Services, as the guarantor, will fulfill the obligations of On Smile LLC, the franchisor, under the franchise registration and Franchise Agreement.
The Guaranty of Performance remains effective until all obligations of the franchisor are met or the franchisor's liability to its franchisees is completely discharged. This means that Cicis Services is committed to supporting the franchisor's responsibilities throughout the duration of the franchise agreements. The guarantor is not released from liability even if a franchisee's claim against the franchisor is outstanding, providing an additional layer of security for franchisees.
The document specifies that notice of acceptance is waived, but the guarantor does not waive notice of the franchisor's default. This distinction implies that while CiCi Services does not need formal acceptance of the guarantee, they still require notification if the franchisor fails to meet its obligations. The guarantee is binding on CiCi Services and its successors and assignees, ensuring long-term accountability. The Guarantor signs this guarantee at Dallas, Texas on the 25 day of April 2025.