What happens if a Cicis franchisee or managing owner refuses to submit to a medical examination to determine permanent disability?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) In case of your or your Managing Owner's death, your or their interests, as applicable, in you, this Agreement and your Restaurant must be transferred to a third party we approve within 12 months after the date of death or permanent disability. If you or, as applicable, your Managing Owner should become permanently disabled, we may, in our sole discretion, require such interests to be transferred to a third party in accordance with the conditions described in this Section 13.D within six (6) months after notice to you. "Permanent disability" means any physical, emotional, or mental injury, illness, or incapacity which would prevent a person from performing the obligations set forth in this Agreement or in the guaranty made part of this Agreement for at least 90 consecutive days and from which condition recovery within 90 days from the date of determination of disability is unlikely. Permanent disability will be determined by a licensed practicing physician we select (and at our costs), upon examination of the person; or if the person
refuses to submit to an examination, then such person automatically will be deemed permanently disabled as of the date of such refusal for the purpose of this Section 13.D.
- (2) You or your representative must promptly notify, in writing, us of your or your Managing Owner's death or permanent disability.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee or their managing owner refuses to submit to a medical examination to determine permanent disability, they will automatically be deemed permanently disabled as of the date of refusal. This determination is specifically for the purposes of Section 13.D of the franchise agreement, which deals with death or permanent disability.
This has significant implications for the franchisee. If deemed permanently disabled, the franchisee's or managing owner's interests in the franchise agreement and the restaurant must be transferred to a third party approved by Cicis. This transfer must occur within 12 months of the date of death or, if Cicis elects, within six months of notice of permanent disability.
The determination of permanent disability is defined as a physical, emotional, or mental condition preventing the performance of obligations under the franchise agreement or guaranty for at least 90 consecutive days, with recovery unlikely within 90 days from the disability determination. Cicis has the right to select a licensed physician to conduct the examination to determine permanent disability, and Cicis will bear the costs of this examination. The franchisee must promptly notify Cicis in writing of the death or permanent disability of the franchisee or managing owner.