How long after the expiration or termination of the Cicis franchise agreement does Cicis have to provide written notice of its election to exercise the Option?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) On expiration (without renewal) or termination of this Agreement, we have the option (the "Option") to acquire from you, free and clear of all liens, any or all of the following: (i) the right to possess the Location (including the right to purchase the land and/or building if you own them), (ii) any equipment leases, (iii) any or all transferrable permits and licenses pertaining to the operation of your Restaurant, and/or (iv) any or all of the physical assets used in or resulting from the operation of your Restaurant, including furnishings, equipment, signs, small wares, fixtures, motor vehicles, supplies, and inventory.
We must exercise the Option by providing you with written notice of our election within 30 days following expiration or termination of this Agreement (the "Option Notice").
In the Option Notice, we will list the categories of items that we intend to purchase.
- (2) The purchase price for the items we describe in our Option Notice (the "Option Assets") will be fair market value.
We and you will first attempt to mutually agree on the fair market value of the Option Assets.
If, at any time, either party decides that mutual agreement will not be reached, it (the "First Side") may give written notice ("FMV Notice") to the other side (the "Second Side") demanding that fair market value be determined through appraisal and including the name of a certified and independent appraiser selected by the First Side.
Within 10 days after delivery of the FMV Notice, the Second Side will notify the First Side, in writing, of its selected certified and independent appraiser, failing which, the fair market value will be determined solely by the appraiser selected by the First Side.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis has the option to acquire certain assets from the franchisee upon the expiration or termination of the franchise agreement. This option includes the right to possess the location, equipment leases, transferable permits and licenses, and physical assets of the restaurant.
To exercise this option, Cicis must provide the franchisee with written notice of its election within 30 days following the expiration or termination of the agreement. This written notice, referred to as the "Option Notice," must list the categories of items that Cicis intends to purchase.
The purchase price for these items, known as the "Option Assets," will be the fair market value. Cicis and the franchisee will initially attempt to agree on this value. If they cannot reach a mutual agreement, either party can demand an appraisal by providing written notice (the "FMV Notice") and including the name of their selected certified and independent appraiser. The other party then has 10 days to respond with their own appraiser selection; otherwise, the first party's appraiser will determine the fair market value.