What happens if a Cicis franchisee refuses to comply with the de-identification requirements after termination?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Cease Operations. You must immediately cease to operate your Restaurant under this Agreement, and you must not thereafter, directly or indirectly, represent to the public or hold yourself out as our present or former franchisee.
- B. Cease Use of the Marks and Confidential Information. 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. If you fail or refuse to comply with the requirements of this Section 16.B, we will have the right to enter upon the premises of your Restaurant, without being guilty of trespass or any other crime or tort, to make or cause to be made such changes as may be required.
- C. Cancel Assumed Name Registrations. You must cancel any assumed name or equivalent registrations which contain any Mark, and you must furnish us with evidence satisfactory to us of your compliance with this obligation within five (5) days after termination or expiration of this Agreement.
- D. No Future Identification with Cicis.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 FDD, if a Cicis franchisee does not promptly de-identify their restaurant according to the System Standards after the franchise agreement terminates, Cicis has the right to correct the deficiency itself. The franchisee is then responsible for reimbursing Cicis for all costs incurred while correcting this deficiency.
Additionally, Cicis has the right to enter the former franchisee's restaurant premises to make the required changes for de-identification without being considered a trespasser. This allows Cicis to ensure the restaurant no longer represents the brand, protecting its trademarks and system standards.
Furthermore, the franchisee must cancel any assumed name registrations that contain any Cicis marks within five days of termination or expiration of the agreement. Evidence of compliance with this obligation must be provided to Cicis. The franchisee must also pay all outstanding sums to Cicis, including damages, costs, and expenses, including reasonable attorneys' fees, resulting from any default by the franchisee. This obligation creates a lien in Cicis's favor against the franchisee's personal property at the restaurant.