What information about financing must be included in the offer sent to Cicis for a proposed franchise transfer?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
If you (or any of your owners) desire to engage in a Transfer, you (or your owners, as applicable) agree to obtain from a responsible and fully disclosed buyer, and send us, a true and complete copy of a bona fide, executed written offer (which may include a letter of intent) relating exclusively to an interest in you or in this Agreement and your Development Rights. The offer must include details of the payment terms of the proposed sale and the sources and terms of any financing for the proposed purchase price. To be a valid, bona fide offer, the entire proposed purchase price must be in a dollar amount, and the proposed buyer must submit with its offer an earnest money deposit equal to five percent (5%) or more of the offering price. The right of first refusal process will not be triggered by a proposed Transfer that would not be allowed under Sections 5.B and 5.C above.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee (or their owners) desires to transfer their interest, they must obtain a bona fide, executed written offer from a responsible buyer and send a complete copy to Cicis. This offer must exclusively relate to the interest in the franchisee or the Development Rights agreement.
The offer needs to include specific details regarding the payment terms of the proposed sale. Additionally, the offer must disclose the sources and terms of any financing that the buyer intends to use for the purchase. To ensure the offer is valid, the entire proposed purchase price must be expressed in a dollar amount, and the buyer is required to submit an earnest money deposit. This deposit must be equal to five percent or more of the total offering price.
This requirement ensures that Cicis has a clear understanding of the financial aspects of the proposed transfer, allowing them to assess the buyer's financial capabilities and the overall viability of the transaction. The earnest money deposit demonstrates the buyer's serious intent and financial commitment to the purchase. Cicis retains the right of first refusal, allowing them to purchase the interest themselves under the same terms and conditions, or to assign this right to a third party.