What happens if the proposed transferee of a Cicis franchise is a business entity?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you and the proposed transferee and its owners (if the transferee is a Business Entity) must provide all information and documents we request regarding the Transfer and the proposed transferee and its owners or affiliates;
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- you and your owners must not have violated any provision of this Agreement or any other agreement with us or our Affiliates during both the 60-day period before you requested our consent to the Transfer and the period between your request and the effective date of the Transfer;
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- each transferee and all its direct and indirect owners and their respective spouses must execute and deliver to us a copy of our then current form of Guaranty undertaking personally to be bound, jointly and severally, by all provisions of this Agreement or, at our discretion, our then-current form of Area Development Agreement and any other ancillary agreements;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if the proposed transferee is a business entity, the owners of that entity must provide all information and documents requested by Cicis regarding the transfer. Cicis requires this information to assess the proposed transfer and protect its brand and interests.
Furthermore, the current franchisee and their owners must comply with all obligations, and the transfer will not be approved if they have violated any agreements with Cicis within 60 days before the transfer request or between the request and the effective date. The transferee and all its direct and indirect owners and their spouses must execute Cicis's current form of Guaranty, binding them to the Franchise Agreement.
These conditions ensure that Cicis maintains control over who operates its franchises and that all parties involved are committed to upholding the brand's standards and agreements. The franchisor aims to ensure the financial and operational stability of its franchisees, which is a common practice in the franchise industry.