If a Cicis franchisee fails to actively operate their restaurant for three consecutive days, what are the potential consequences?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) you (i) lose the right to possess the Location, (ii) close your Restaurant for business or inform us of your intention to permanently cease operation of your Restaurant, (iii) fail to actively operate your Restaurant for three (3) or more consecutive days, or (iv) otherwise abandon or appear to have abandoned your rights under this Agreement;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee fails to actively operate their restaurant for three or more consecutive days, it constitutes a default under the franchise agreement. This gives Cicis the right to terminate the agreement.
In addition to termination, Cicis has the option to require the franchisee to cease operating the restaurant until the default is cured or until Cicis exercises its right to terminate the agreement. The franchisee waives all claims against Cicis and its affiliates arising from any suspension and must indemnify them against third-party claims resulting from Cicis's exercise of these rights.
Upon termination of the franchise agreement, the franchisee must immediately cease operating the Cicis restaurant and must not represent themselves as a current or former franchisee. They must also stop using Cicis's marks and confidential information. Failure to de-identify the restaurant according to Cicis's standards allows Cicis to take corrective action at the franchisee's expense. The franchisee must also cancel any assumed name registrations containing Cicis's marks and pay all outstanding amounts to Cicis and its affiliates, which will create a lien against the franchisee's personal property at the restaurant location.