What happens if a Cicis franchisee fails to acquire the right to possess the location?
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 fails to acquire the right to possess the location or to develop and open their Cicis Restaurant for business within the prescribed timeframe, it constitutes a non-curable default. This is considered 'cause' for termination of the Franchise Agreement.
This means that Cicis can terminate the franchise agreement immediately without providing an opportunity for the franchisee to correct the issue. Other examples of non-curable defaults include insolvency, operating at an unapproved location, failing to construct or remodel according to approved plans, losing the right to possess the premises, closing the restaurant, abandoning rights, criminal convictions, endangering public health, failing to complete initial training, unauthorized transfers, failure to pay monies owed, breach of other agreements, engaging in competing businesses, falsifying records, or breaching obligations.
Upon termination, the franchisee must immediately cease operating the Cicis Restaurant, stop using Cicis's marks and confidential information, cancel any assumed name registrations containing any mark, stop identifying themselves as associated with Cicis, pay all outstanding amounts, return the manual and confidential information, and comply with non-compete covenants. This could have significant financial and operational consequences for the franchisee, as they would lose the right to operate under the Cicis brand and would be bound by the terms of the non-compete agreement.