factual

What happens if a Cicis franchisee fails to comply with obligations regarding the use and confidentiality of Confidential Information?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (n) you or any Person bound by obligations regarding the use and confidentiality of Confidential Information fail to comply with those obligations;

If any such default is not cured within the specified time, or such longer period the Laws may require, we may terminate this Agreement effective immediately on written notice to you.

C. Alternative Remedies. Without limiting any of our rights set forth above, if at any time we have, but have not yet exercised, our right to terminate this Agreement for any reason, we may, in our sole discretion, in addition to other remedies we might have and without waiving any rights with respect to the default, require that you cease operating your Restaurant until the earlier of the default which serves as the basis for our right to terminate is cured or we exercise our right to terminate. You hereby waive all claims against us and our affiliates arising from any suspension provided for in this Section 15.C, and you hereby indemnify us against any claims brought by any third parties arising out of our exercise of our rights under this Section 15.C, in connection with your indemnity obligations set forth in Section 14 above.

Upon the expiration or termination of this Agreement, all rights granted to you hereunder will immediately terminate, and:

You must immediately and permanently cease to use, in any manner whatsoever, and return to us (or, at our direction, destroy) any Confidential Information and cease to use the mark "Cicis" and all other Marks.

If you fail to promptly de-identify your Restaurant in accordance with our then-current System Standards, then we will have the right to cure deficiency, and you must reimburse us for all costs we incur in curing such deficiency.

Source: Item 22 — CONTRACTS (FDD pages 64–65)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, a franchisee's failure to comply with obligations regarding the use and confidentiality of confidential information constitutes a default under the franchise agreement. If a franchisee or any person bound by obligations regarding the use and confidentiality of confidential information fails to comply with those obligations, it is grounds for default.

If the default is not cured within the specified time, or such longer period the Laws may require, Cicis may terminate the franchise agreement effective immediately upon written notice to the franchisee. Cicis also has the option to require the franchisee to cease operating the restaurant until the default is cured or Cicis exercises its right to terminate the agreement.

Upon termination of the agreement, the franchisee must immediately cease using and return (or destroy, at Cicis's direction) any confidential information. This obligation extends to ceasing the use of the Cicis marks. Failure to de-identify the restaurant according to Cicis's system standards allows Cicis to cure the deficiency at the franchisee's expense.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.