What information related to the transfer and the proposed transferee can Cicis request?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We may consider, and you will provide or assist us in compiling, any information we deem necessary or appropriate in connection with our assessment of a proposed Transfer. If we elect to approve a proposed Transfer, we may, at our discretion, condition our approval in any manner we deem necessary and appropriate to protect the Cicis brand and our interests in the System and this Agreement, including any of the following (each of which you agree is reasonable):
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- you and the proposed transferee and its owners (if the transferee is a Business Entity) must provide all information and documents we request regarding the Transfer and the proposed transferee and its owners or affiliates;
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- you must provide us with executed versions of any relevant documents to effect the Transfer, and all other information we request about the proposed Transfer;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their Development Rights, Cicis may request any information it deems necessary to assess the proposed transfer. Specifically, Cicis can require the franchisee, the proposed transferee, and the transferee's owners (if the transferee is a business entity) to provide all information and documents Cicis requests regarding the transfer, the proposed transferee, and its owners or affiliates.
This means a prospective Cicis franchisee needs to be aware that selling their franchise is not guaranteed. Cicis retains significant control over who can become a franchisee and can request extensive documentation from both the seller and the potential buyer. This protects Cicis's brand by ensuring that any new franchisee meets their standards.
Furthermore, the franchisee must provide Cicis with executed versions of any relevant documents to effect the transfer, along with any other information Cicis requests about the proposed transfer. This could include financial statements, business plans, and other sensitive information. Cicis's broad authority to request 'any information' provides them with considerable discretion in approving or denying a transfer.
In practice, this condition allows Cicis to thoroughly vet potential transferees to ensure they are financially stable, have relevant experience, and are a good fit for the Cicis system. Franchisees looking to sell their Cicis franchise should be prepared for a potentially lengthy and detailed approval process involving significant information disclosure.