What happens to the monetary value of goodwill associated with a Cicis franchisee's use of the Marks upon expiration or termination of the agreement?

According to Cicis's 2025 Franchise Disclosure Document, any goodwill arising from a franchisee's use of Cicis's trademarks and the Cicis system will solely benefit Cicis and its affiliates. Upon the expiration or termination of the franchise agreement, the franchisee will not be entitled to any monetary compensation for the goodwill associated with their use of the Cicis marks.

This means that while a Cicis franchisee operates their business, any positive reputation or customer loyalty they build using the Cicis brand name and system ultimately benefits Cicis itself. The franchisee cannot claim any financial stake in this goodwill when the franchise agreement ends. This is a standard practice in franchising, as the brand and associated trademarks are the intellectual property of the franchisor.

For a prospective Cicis franchisee, this highlights the importance of understanding that the value they build in their local Cicis restaurant primarily benefits the franchisor. While a successful restaurant can provide income during the term of the agreement, the franchisee should not expect to receive compensation for the increased brand recognition or customer base they establish when the agreement expires or is terminated. This underscores the need to carefully evaluate the potential for profit generation during the franchise term.

This clause protects Cicis's brand equity and ensures consistent brand management across all franchise locations. It prevents franchisees from claiming ownership of the goodwill they helped create while operating under the Cicis brand. Franchisees contribute to the brand's overall value, but the monetary benefits of that contribution revert to Cicis upon termination or expiration of the agreement.