How many failures of the same obligation within a 6-month period can lead to termination of the Cicis Franchise 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 the 2025 Cicis Franchise Disclosure Document, Cicis can terminate the Franchise Agreement if a 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 Cicis franchise agreement is designed to ensure franchisees consistently meet their contractual obligations. The fact that Cicis can terminate the agreement even if the franchisee corrects the failure after notification highlights the importance Cicis places on consistent compliance. This could be particularly relevant for obligations related to brand standards, operational procedures, or financial reporting, where repeated failures could negatively impact the Cicis brand and customer experience.
For a prospective Cicis franchisee, this means carefully reviewing the Franchise Agreement to understand all obligations and implementing systems to ensure consistent compliance. Franchisees should prioritize understanding and adhering to the key obligations outlined in the agreement to avoid potential termination. It would be prudent to seek legal counsel to fully understand the implications of this clause and to develop strategies for maintaining compliance.