How many obligation failures within a 12-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, the Development Agreement can be terminated if you fail to comply with your obligations. Specifically, if you fail to comply with three or more obligations under the agreement during any 12 consecutive month period, Cicis may terminate the agreement. This applies whether or not Cicis notifies you of the failures and whether or not you correct the failures after receiving notice.
Additionally, Cicis can terminate the Development Agreement if you fail to comply with the same obligation on two or more separate occasions within any six consecutive month period. Similar to the previous condition, this is regardless of whether Cicis notifies you of the failures and whether you correct them after notice.
These terms highlight the importance of understanding and adhering to all obligations outlined in the Development Agreement. Failing to meet these obligations, even if the failures are corrected, can lead to the termination of the agreement and the loss of development rights. Prospective franchisees should carefully review the Development Agreement and seek legal counsel to fully understand their responsibilities and the potential consequences of non-compliance.