If a franchisee has a Development Agreement with Cicis, must the Managing Owner be the same across all franchise agreements?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise approved by us, the Managing Owner will be the same for all franchise agreements executed pursuant to any Development Agreement between you (or your affiliate) and us and the same as the Managing Owner designated under any such Development Agreement.
The Managing Owner must own and maintain at least 25% of the direct ownership interests in you.
Except as may otherwise be provided in this Agreement, the Managing Owner's interest in you will be and will remain free of any pledge, mortgage, hypothecation, lien, charge, encumbrance, voting agreement, proxy, security interest, or purchase right or options.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee enters into a Development Agreement with Cicis, the Managing Owner must generally be the same across all franchise agreements executed under that Development Agreement, unless Cicis approves otherwise. The Managing Owner is the individual with primary responsibility for supervising the franchisee's activities under the Franchise Agreement.
Specifically, the FDD states that the Managing Owner should be the same for all franchise agreements executed under any Development Agreement between the franchisee (or an affiliate) and Cicis, and also the same as the Managing Owner designated under the Development Agreement itself. This requirement ensures consistent management and oversight across multiple Cicis locations owned by the same franchisee or affiliated entities.
The Managing Owner must be a natural person approved by Cicis and must own and maintain at least 25% of the direct ownership interests in the franchise. This individual's interest in the franchise must remain free of any pledges, mortgages, liens, or other encumbrances, ensuring their commitment and control over the Cicis business. The Managing Owner concept is important to Cicis, as it wants a consistent point of contact that has a vested interest in the success of the franchise.