What happens if Cicis objects to any reference to Cicis or its affiliates in a franchisee's offering literature or prospectus?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Written information used to raise or secure funds can reflect upon us and the System. You agree to submit any written information intended to be used for that purpose to us before inclusion in any registration statement, prospectus or similar offering memorandum. Should we object to any reference to us or our affiliates or any of our business in the offering literature or prospectus, the literature or prospectus shall not be used until our objections are withdrawn. You may not engage in a public offering of securities without our prior written consent.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee intends to use written information to raise or secure funds and that information includes references to Cicis or its affiliates, the franchisee must submit this information to Cicis for review before it is included in any registration statement, prospectus, or similar offering memorandum.
Should Cicis object to any reference to Cicis, its affiliates, or its business within the offering literature or prospectus, the document cannot be used until Cicis withdraws its objections. This means the franchisee will need to revise the document to address Cicis's concerns before proceeding with its use.
Furthermore, the FDD states that a franchisee cannot engage in a public offering of securities without Cicis's prior written consent. This provision ensures that Cicis maintains control over how its brand and business are represented in financial documents and offerings, protecting its reputation and interests. A prospective franchisee should factor in potential delays and costs associated with this review process when planning any fundraising activities.