How does Cicis's Item 9, regarding franchisee obligations, relate to the pre-opening obligations outlined in Item 11?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Agreement | Disclosure Document item |
|---|---|---|
| a. | Franchise Agreement – | Items 8 and 11 |
| Site selection and | Section 1.B. | |
| acquisition/lease | Area Development Agreement – Section 2.D. | |
| b. | Franchise Agreement – | Items 5, 6, 7, 8, 9, |
| Pre-opening | Section 6 | |
| purchases/leases | Area Development Agreement – N/A | and 11 |
| c. Site development and other pre-opening | Franchise Agreement - Sections 2, 5.D., 5.E., and 5.F. | Items 7, 8, and 11 |
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Item 9 cross-references Item 11 to highlight the franchisee's obligations related to the franchisor's assistance, particularly during the pre-opening phase. Item 9 provides a table that outlines various franchisee obligations and specifies which sections of the Franchise Agreement and which items in the Disclosure Document relate to each obligation. This helps a prospective franchisee understand where to find details about what they are responsible for.
Specifically, the table in Item 9 mentions 'Site selection and acquisition/lease' which refers to Section 1.B of the Franchise Agreement and Items 8 and 11 of the FDD. This indicates that the franchisee has obligations related to site selection, which are further detailed in Item 11. Similarly, 'Pre-opening purchases/leases' are linked to Sections 6 of the Franchise Agreement and Items 5, 6, 7, 8, 9, and 11 of the FDD, implying that the franchisee has responsibilities for pre-opening purchases and leases, as described in Item 11. 'Site development and other pre-opening requirements' are tied to Sections 2, 5.D., 5.E., and 5.F. of the Franchise Agreement and Items 7, 8, and 11, indicating the franchisee's duties in site development as discussed in Item 11.
Item 11 details Cicis's pre-opening obligations, such as reviewing and accepting the proposed site, providing on-site evaluations, reviewing lease modifications, loaning architectural plans, and conducting site inspections. Item 9 makes it clear that the franchisee has obligations that correspond to these franchisor activities. For example, while Cicis reviews and approves the site, the franchisee is responsible for securing this approval within 120 days of signing the Franchise Agreement.
In essence, Item 9 serves as a roadmap, directing the franchisee to Item 11 and other relevant sections of the FDD and Franchise Agreement to understand the full scope of their obligations, especially those that align with Cicis's assistance during the pre-opening phase. This cross-referencing helps ensure that franchisees are aware of their responsibilities and how they relate to the support and services provided by Cicis.