What is the impact of a Cicis franchisee's failure to comply with the obligations that survive termination?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
f terminating this Agreement terminate or modify any territorial rights or protection granted to you in Section 2.B. of this Agreement, reduce the size of your Development Area, reduce the number of Restaurants listed in the Development Schedule, and/or pursue any other remedy we may have at law or in equity. Our exercise of any of our options under this Section will not constitute a waiver by us to exercise our option to terminate this Agreement at any time with respect to a subsequent event of default of a similar or different nature and will not obligate us to refund any portion of the Development Fee.
7. RIGHTS AND OBLIGATIONS ON TERMINATION OR EXPIRATION OF THIS AGREEMENT.
A. YOUR OBLIGATIONS.
You and, as applicable, your owners and all such other persons or Business Entities who are bound under the terms of this Agreement must immediately upon the expiration or termination of this Agreement, cease to directly or indirectly exercise or attempt to exercise any of the rights granted to you under this Agreement, comply with all obligations that either expressly survive or by their nature are intended to survive the expiration or termination of this Agreement, and refrain from interfering or attempting to interfere with our or our Affiliat
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, the franchisee must cease exercising any rights granted under the agreement. The franchisee must also comply with all obligations that expressly survive or are intended to survive the termination. These continuing obligations remain in full effect even after the agreement's expiration or termination until they are fully satisfied or naturally expire.
These obligations include, but are not limited to, non-disparagement, non-competition, non-interference, confidentiality, and indemnification. Failure to adhere to these continuing obligations could expose the franchisee (and their owners) to legal action by Cicis.
In practical terms, this means that even after a Cicis franchise closes, the former franchisee must not take actions that could harm the Cicis brand, disclose confidential information, or compete unfairly with existing Cicis restaurants. These restrictions are typical in franchising to protect the brand and the interests of other franchisees in the system.