What happens if a Cicis franchisee files for bankruptcy?

According to Cicis's 2025 Franchise Disclosure Document, if a franchisee files a petition in bankruptcy, it can lead to additional remedies. Specifically, if you (or any of your owners) file a petition in bankruptcy, Cicis has grounds for certain actions.

In addition to filing for bankruptcy, other actions such as having a petition in bankruptcy filed against you, making an assignment for the benefit of creditors, admitting in writing your insolvency, consenting to the appointment of a receiver, trustee, or liquidator of all or a substantial part of your property, or having any of your or your Affiliates' Restaurants attached, seized, or levied upon (unless vacated within 30 days) can also trigger these remedies. Similarly, if any order appointing a receiver, trustee, or liquidator of your or your Affiliates' Restaurants is not vacated within 30 days following the order's entry, Cicis may take action.

These remedies are in addition to other potential defaults, such as failing to comply with obligations under the agreement, failing to comply with anti-terrorism laws, or engaging in conduct that adversely affects the reputation of Cicis Restaurants. It is important for a prospective franchisee to understand these conditions and their potential consequences, as they could lead to termination of the franchise agreement and loss of the franchise.