factual

What does the landlord represent and warrant regarding the premises title in the Cicis lease agreement?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

Landlord hereby represents and warrants that it holds fee simple title to the Premises and has all requisite right, power and authority to lease the Premises to Franchisee.

Landlord hereby agrees to obtain a non-disturbance agreement for the benefit of Franchisee: a) from the holder of any mortgage/deed of trust as of the date of the Lease; and b) as a condition to Franchisee's subordination to any mortgage/deed of trust granted after the date of the Lease.

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

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, the landlord represents and warrants to the tenant (franchisee) that it holds fee simple title to the premises and possesses all necessary rights, power, and authority to lease the premises to the franchisee. This means the landlord legally owns the property and is not restricted from entering into a lease agreement. This representation is crucial for a Cicis franchisee because it confirms the landlord's legal standing to lease the property, which is essential for the franchisee's right to operate their business.

Additionally, the landlord must obtain a non-disturbance agreement for the benefit of the franchisee. This agreement needs to be secured from any mortgage/deed of trust holder as of the lease date and as a condition for the franchisee's subordination to any mortgage/deed of trust granted after the lease date. A non-disturbance agreement protects the franchisee's leasehold interest in the event the landlord defaults on their mortgage, ensuring the franchisee can continue operating their Cicis restaurant without interruption.

These representations and agreements are designed to protect the Cicis franchisee's investment and business operations by ensuring the landlord has clear title to the property and that the franchisee's lease is protected against potential disruptions due to the landlord's financial obligations. This is a standard practice in franchising to provide franchisees with a stable and secure business location.

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.