What happens if a Cicis franchisee endangers public health or safety?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
our affiliates or guarantors) and us (or our affiliates) within the applicable cure period, if any. | | | h. "Cause" defined – non-curable defaults | Franchise Agreement – Section 15.A. | If you (or any of your owners, as applicable) (i) become insolvent; (ii) operate your Cicis Restaurant at a location we have not approved or sell any products or services authorized by us; (iii) fail to acquire the right to possess the location or to develop and open your Cicis Restaurant for business within the prescribed timeframe; (iv) fail to construct or remodel your Cicis Restaurant in accordance with the approved plans and specifications; (v) lose the right to possess the premises of your Cicis Restaurant; (vi) close your Cicis Restaurant for business or inform us of your intention to permanently cease operation of your Cicis Restaurant (except as permitted under the Reopen Incentive Addendum), (vii) fail to actively operate your Cicis Restaurant for 3 or more consecutive days, (viii) otherwise abandon or appear to have abandoned your rights; (ix) are convicted of or plead guilty to felony or any other crime or offense that we believe is reasonably likely to have an adverse effect on the System, the Marks, or our goodwill; (x) endanger or threaten public health or safety from the construction, maintenance, or operation of your Cicis Restaurant; (xi) fail to ensure that you and your required personnel complete our initial training; (xii) make or attempt an unauthorized transfer; (xiii) fail, refuse, or neglect promptly to pay (or cause your affiliates to pay) any monies owing to us, any of our affiliates, or the designated suppliers or to submit the financial or other information required by us; (xiv) are in default of any other agreement with us, our affiliate or our designated suppliers (including the Area Development Agreement); (xv) engage in Competing Businesses; (xvi) fail to comply with the confidentiality obligations; (xvii) falsify records; or (xviii) are in breach of your (or their) obligations. | | | Provision | Section in Franchise or other Agreement | Summary | |------------------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 45–53)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee endangers or threatens public health or safety from the construction, maintenance, or operation of their Cicis restaurant, it constitutes a non-curable default. This means Cicis can terminate the franchise agreement immediately without providing an opportunity for the franchisee to correct the issue.
This provision is significant because it underscores Cicis's commitment to protecting public health and safety. Unlike many other defaults that a franchisee might have a chance to fix, endangering public health triggers immediate termination. This could include situations such as severe food safety violations, structural hazards in the restaurant, or any other condition that poses an immediate risk to customers or the public.
Upon termination, the franchisee must immediately cease operating the Cicis restaurant, stop using Cicis's trademarks and confidential information, cancel any assumed name registrations containing Cicis's marks, and stop identifying their business as associated with Cicis. They must also pay all outstanding amounts owed to Cicis and its affiliates, return the operations manual and other confidential information, and comply with non-compete covenants. This ensures a clean break and protects Cicis's brand and reputation.
For a prospective franchisee, this highlights the critical importance of adhering to all health and safety regulations and maintaining the restaurant in a manner that does not pose any risk to the public. Failure to do so can result in the immediate loss of the franchise, along with all associated investments and future income.