What happens to the Franchise Agreements with CiCi Enterprises as they are transferred or renewed for Cicis restaurants?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchises for Cicis Restaurants, as described in this Disclosure Document, were offered and sold by our indirect parent, CiCi Enterprises, from September 2003 until April 2021. As of the issuance date of this Disclosure Document, CiCi Enterprises is the franchisor under 133 existing Franchise Agreements (as defined below) for Cicis restaurants. As those Franchise Agreements are transferred or renewed, the franchisees execute new form Franchise Agreements with us. Pursuant to a Service Agreement, we perform all of CiCi Enterprises' obligations under Franchise Agreements to which it is a party. CiCi Enterprises has never operated a business similar to what you will operate and has never offered franchises in any other line of business.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 6–8)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, CiCi Enterprises, the indirect parent company, offered and sold Cicis Restaurant franchises from September 2003 until April 2021. As of the issuance date of the 2025 Disclosure Document, CiCi Enterprises is the franchisor under 133 existing Franchise Agreements for Cicis restaurants. However, as these Franchise Agreements are either transferred or up for renewal, franchisees will execute new Franchise Agreements directly with On Smile LLC, the current franchisor. On Smile LLC performs all of CiCi Enterprises' obligations under the existing Franchise Agreements through a Service Agreement.
This means that while some franchisees may still have agreements with CiCi Enterprises, any new agreements or renewals will be directly with On Smile LLC. This transition is important for prospective franchisees to understand, as On Smile LLC is the entity they will be dealing with for the duration of their franchise agreement. It also indicates a shift in the franchise structure, with On Smile LLC taking over the franchising responsibilities from its parent company.
For potential franchisees, this information highlights the importance of reviewing the current Franchise Agreement provided by On Smile LLC (Exhibit B) carefully. The terms and conditions in the new agreement may differ from those in the agreements previously held with CiCi Enterprises. Understanding these differences is crucial for making an informed decision about investing in a Cicis franchise.