If a Cicis franchisee is a business entity, what must it maintain throughout the term of the agreement?

Based on the 2025 Cicis Franchise Disclosure Document, if the franchisee is a business entity, it must ensure that it, along with any person or entity obligated under the agreement or guaranty, complies with all obligations. Additionally, the franchisee and its owners (if the franchisee is a business entity) must provide all information and documents requested by Cicis regarding the transfer and the proposed transferee, including its owners or affiliates.

Furthermore, the franchisee must provide Cicis with executed versions of any relevant documents to effect the transfer, along with any other information requested about the proposed transfer. If the franchisee or transferor offers financing to the transferee for any part of the purchase price, the transferee's obligations under promissory notes, agreements, or security interests related to the development rights must be subordinate to the transferee's obligation to pay all amounts due to Cicis, its affiliates, and third-party vendors.

In addition to the above, the franchisee and its owner(s) must sign a general release, in a form satisfactory to Cicis, of any and all claims against Cicis, its affiliates, and their related parties. The franchisee and its transferring owner(s), along with their immediate family members, must also sign a non-competition covenant in favor of Cicis, commencing on the effective date of the transfer and consistent with the post-term non-competition obligations contained in the most recent Franchise Agreement that the franchisee or its affiliates have signed with Cicis. Finally, the franchisee must pay all amounts owed to Cicis, its affiliates, and third-party vendors, and have submitted all required reports and statements under the Development Agreement and any Franchise Agreement with Cicis.