How many obligation failures within a 12-month period can lead to termination of the Cicis Franchise Agreement?

According to Cicis's 2025 Franchise Disclosure Document, the franchise agreement can be terminated if a franchisee fails to comply with their obligations. Specifically, if a franchisee fails to comply with three or more obligations under the agreement during any 12 consecutive month period, Cicis has grounds for termination. This applies whether or not Cicis notifies the franchisee of these failures, and regardless of whether the franchisee corrects the failures after receiving notice.

Additionally, Cicis can terminate the agreement if a franchisee fails 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 irrespective of whether Cicis provides notice of the failures or if the franchisee rectifies the situation after notification.

This clause in the Cicis franchise agreement places a significant responsibility on the franchisee to maintain consistent compliance with all aspects of the agreement. The potential for termination due to multiple failures within a relatively short timeframe highlights the importance of diligent management and adherence to the franchise terms. Prospective franchisees should carefully review the franchise agreement to fully understand their obligations and implement systems to ensure ongoing compliance.