Does the Cicis Lease Rider grant On Smile LLC rights as a third-party beneficiary?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW THEREFORE, in consideration of mutual covenants set forth herein, the execution and delivery of the Lease, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Franchisee hereby agree as follows:
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- The effectiveness of the Lease is contingent upon Franchisor's approval of the Premises and the form of the Lease. To the extent permitted under applicable law, Franchisor is a third-party beneficiary of all of the rights and privileges set forth in this Rider, and it is intended by Landlord and Tenant that Franchisor will be entitled to enforce this Rider, provided, however, Franchisor does not assume any duties, obligations, or liabilities under this Rider or the Lease unless agreed to in writing by Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Lease Rider does grant On Smile LLC (the franchisor) rights as a third-party beneficiary. Specifically, the Lease Rider states that the effectiveness of the lease is contingent upon Cicis's approval of the premises and the form of the lease.
To the extent permitted by law, Cicis is a third-party beneficiary with the right to enforce the Lease Rider. However, Cicis does not assume any obligations or liabilities under the Rider or the lease unless they agree to it in writing. This clause ensures Cicis has the power to enforce the lease terms critical to protecting its brand and the standards of its franchise system without being bound by the franchisee's obligations.
This is a common practice in franchising, as it allows the franchisor to maintain control over the locations where its brand is represented. It ensures that the premises meet the franchisor's standards and that the lease terms are favorable to the franchisor's interests. For a prospective Cicis franchisee, this means that the franchisor has a vested interest in the lease agreement and can intervene to protect its rights if necessary.