What happens if the landlord defaults on their lease obligations to a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
If Landlord defaults in its obligations under the Lease, Tenant must give written notice of the default to Landlord and Landlord will have thirty (30) days thereafter to cure the default; provided, however, if Landlord's default cannot be cured solely by the payment of money and more than thirty (30) days is required to complete the cure of such default, then Landlord will not be deemed to be in default if Landlord immediately commences the cure and diligently and continuously prosecutes such cure beyond the expiration of the initial thirty (30) day period, but in no event in excess of ninety (90) days.
If Landlord remains in default under the Lease, then Tenant may, in addition to any other remedies it may have, perform the obligation of Landlord.
Any reasonable expenses incurred by Tenant in connection therewith must be reimbursed by Landlord within thirty (30) days after Landlord's receipt of written invoice for Tenant's expenses.
If Landlord fails to timely reimburse the foregoing amount, then Tenant may offset the invoiced amount against its next rent payment.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if the landlord defaults on their lease obligations, the tenant (franchisee) must provide written notice to the landlord, who then has 30 days to correct the default. However, if the default cannot be resolved by a simple payment and requires more than 30 days to cure, the landlord is not considered in default if they start the cure immediately and continue diligently, with a maximum of 90 days allowed for the cure.
If the landlord remains in default after this period, the Cicis franchisee has the option to perform the landlord's obligation themselves, in addition to any other remedies they may have. The landlord is then required to reimburse the franchisee for any reasonable expenses incurred within 30 days of receiving a written invoice.
If the landlord fails to reimburse the franchisee in a timely manner, the franchisee can offset the invoiced amount against their next rent payment. This provision ensures that Cicis franchisees have a mechanism to address landlord defaults and protect their business operations by performing the obligations themselves and being compensated for it.