If Cicis implements a dispute resolution program, are franchisees required to comply with it?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
The standards, specifications, procedures, and rules for such dispute resolution program will be made part of the Manuals, and if made part of the Manuals, on either a voluntary or mandatory basis, you will comply with all such standards, specifications, procedures, and rules in seeking resolution of any claims, controversies, or disputes with or involving us or other franchisees or developers, if applicable under the program.
You agree to comply with and participate in such program if implemented.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if Cicis establishes a dispute resolution program, franchisees must comply with its standards, specifications, procedures, and rules. These will be included in the Manuals, and compliance is required whether participation is voluntary or mandatory. The franchisee agrees to participate in the program if it is implemented.
This means that if Cicis decides to create a formal process for resolving disagreements between the company and its franchisees, or among franchisees themselves, you will be obligated to follow that process. This could involve mediation, arbitration, or other methods of conflict resolution. The specific rules of the program will be detailed in the Cicis Manuals, which franchisees are expected to adhere to as part of their franchise agreement.
It is important for prospective franchisees to understand the scope and nature of any dispute resolution program that Cicis might implement. Franchisees should carefully review the Manuals and any updates related to dispute resolution to understand their rights and obligations. Understanding the dispute resolution process is crucial for addressing any potential conflicts that may arise during the franchise term.