How many failures of the same obligation within a 6-month period can lead to termination of the Cicis Development Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you (or any of your owners) (a) fail to comply with three (3) or more of your or their obligations under this Agreement during any 12 consecutive month period or (b) on two (2) or more separate occasions within any six (6) consecutive month period fail to comply with the same obligation under this Agreement, in either case, whether or not we notify you of the failures, and, if we do notify you of the failures, whether or not you correct the failures after our delivery of notice to you;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis can terminate the Development Agreement if the franchisee fails to comply with the same obligation under the agreement on two or more separate occasions within any six consecutive month period. This is regardless of whether Cicis notifies the franchisee of the failures or whether the franchisee corrects the failures after receiving notice.
This clause in the Development Agreement highlights the importance of consistent compliance with all obligations. Even if a franchisee corrects a failure after being notified, repeated failures regarding the same obligation within a short timeframe can lead to termination. This could include issues such as failure to meet certain reporting requirements, failure to maintain certain standards, or failure to make payments on time.
Prospective Cicis franchisees should carefully review the Development Agreement to understand all of their obligations and ensure they have systems in place to consistently meet those obligations. Understanding and adhering to these requirements is crucial to avoid potential termination of the agreement and the loss of development rights.