What happens if a Cicis franchisee's affiliate fails to comply with any agreement with Cicis?

According to the 2025 Cicis Franchise Disclosure Document, if a Cicis franchisee's affiliate fails to comply with any agreement with Cicis or its affiliates, it constitutes a breach of the franchise agreement. The franchisee has an opportunity to correct this failure within the cure period specified in the applicable agreement. If the failure is not corrected within this time frame, Cicis has grounds for further action.

Specifically, Cicis may choose to terminate or modify any territorial rights or protection granted to the franchisee in Section 2.B of the agreement. Cicis could also reduce the size of the franchisee's Development Area or decrease the number of restaurants listed in the Development Schedule. Additionally, Cicis retains the right to pursue any other legal or equitable remedies available to them.

It's important to note that Cicis's decision to exercise any of these options does not prevent them from terminating the agreement later if there is a subsequent default. Furthermore, Cicis is not obligated to refund any portion of the Development Fee if they take action due to the affiliate's non-compliance. This clause underscores the importance of ensuring that all related parties, including affiliates, adhere to the agreements with Cicis to avoid potential repercussions such as loss of territorial rights or termination of the franchise agreement.