What happens to the monetary value of goodwill associated with the Marks upon expiration or termination of the Cicis franchise agreement?

According to Cicis's 2025 Franchise Disclosure Document, any goodwill arising from a franchisee's use of the Cicis Marks and 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 or value attributable to the goodwill associated with their use of the Marks. This means that any increase in brand recognition, customer loyalty, or overall business value created through the franchisee's efforts using the Cicis brand will revert entirely to Cicis.

This provision is standard in many franchise agreements. It ensures that the franchisor retains control over its brand and the benefits derived from it. For a prospective Cicis franchisee, this means that while they can build a successful business leveraging the Cicis brand, they will not be able to monetize the brand equity they helped create if they decide to leave the system or upon termination of the agreement. The franchisee essentially contributes to building the overall brand value of Cicis, but that value remains with the franchisor.

This aspect is crucial for franchisees to consider when evaluating the long-term potential of a Cicis franchise. While franchisees benefit from using a recognized brand, they should be aware that they are not building equity in the brand itself. This is a standard practice in franchising, where the franchisor owns the intellectual property and brand recognition, and the franchisee pays for the right to use it. Franchisees should factor this into their financial planning and exit strategies, understanding that the goodwill they build will not translate into a monetary asset they can claim upon exiting the Cicis system.