What happens if a Cicis franchisee is in default of any other agreement with Cicis?

According to the 2025 Cicis Franchise Disclosure Document, if a franchisee or their affiliates are in default of any agreement with Cicis or its affiliates, this can impact their ability to renew their franchise agreement. Specifically, to be eligible for renewal, the franchisee and their affiliates must not be in default of any provision of the Franchise Agreement or any other agreement with Cicis or its affiliates. Furthermore, they must have substantially and timely complied with the terms and conditions of such agreements during their respective terms.

This condition ensures that franchisees seeking to renew have maintained a good standing with the franchisor throughout the term of their agreement. Defaulting on other agreements, even if seemingly unrelated to the core franchise operations, can be grounds for denying renewal. This could include defaults on supply agreements, financing arrangements with Cicis, or other business dealings.

For a prospective Cicis franchisee, this underscores the importance of carefully managing all contractual relationships with the franchisor and its affiliates. Maintaining compliance and avoiding defaults is not only essential for the ongoing operation of the franchise but also for securing the option to continue the business under the Cicis brand in the future. Franchisees should seek legal counsel to fully understand their obligations under all agreements and implement systems to ensure timely compliance.