factual

If Cicis manages the Cicis restaurant on an interim basis, can Cicis charge a fee for their management services?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (2) You or your representative must promptly notify, in writing, us of your or your Managing Owner's death or permanent disability.

At our request, within a reasonable period of time not to exceed seven (7) days from the date of death or permanent disability, the executor, administrator, or other personal representative of the deceased or disabled person will provide for interim management of your Restaurant until such time as a transfer has been effected in accordance with the provisions of this Section 13.D.

Such interim management must be approved by us and must be conducted in accordance with the terms of this Agreement.

We may (but are not obligated to) assume such interim management of your Restaurant; provided that (i) our interim management of your Restaurant will not relieve you of your obligations under this Agreement; (ii) we will not be liable for any debts, losses, costs, or expenses incurred in the operation of your Restaurant during any such period of interim management; (iii) we will have the right to charge a reasonable fee for our management services, plus the direct out-of-pocket costs and expenses incurred in the operation of the Restaurant; and (iv) you will, and hereby do, indemnify and hold us harmless against any and all judgments, fines, losses, liabilities, costs, amounts paid in settlement, and reasonable expenses (including, but not limited to attorneys' fees) incurred in connection with our interim management of your Restaurant, except by reason of our gross negligence or willful misconduct.

Source: Item 22 — CONTRACTS (FDD pages 64–65)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, Cicis has the right to charge a reasonable fee for their management services if they assume interim management of a restaurant. This situation typically arises if the franchisee or managing owner dies or becomes permanently disabled.

Specifically, Cicis's interim management does not relieve the franchisee of their obligations under the franchise agreement. Cicis will not be liable for any debts, losses, costs, or expenses incurred during their management. In addition to a reasonable management fee, Cicis can also charge for direct out-of-pocket costs and expenses related to operating the restaurant during the interim period.

The franchisee is required to indemnify and hold Cicis harmless against any judgments, fines, losses, liabilities, costs, settlement amounts, and reasonable expenses, including attorney's fees, incurred during the interim management. The only exception to this indemnification is in cases of Cicis's gross negligence or willful misconduct.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.