What is the maximum term length, including extensions, for a lease that Cicis may enter into for the Restaurant premises?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
The rental under the lease for the initial 10-year term will be the fair rental value of the property as determined pursuant to agreement or the appraisal procedure described above.
Such lease, and any renewals or extensions of such lease, will provide that we or our designee may terminate the lease on not less than 30 days written notice, at any time after the first 12 months of the lease term and that in such event, we or our designee, must pay a sum equal to three months' rent as the sole and exclusive compensation to the landlord.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the initial lease term is 10 years, and any renewals or extensions of such lease will provide that Cicis or its designee may terminate the lease with not less than 30 days written notice, at any time after the first 12 months of the lease term. In such an event, Cicis or its designee, must pay a sum equal to three months' rent as the sole and exclusive compensation to the landlord.
This means that while a franchisee may initially negotiate a lease for a 10-year term, Cicis retains the right to terminate the lease early under certain conditions. This clause protects Cicis by allowing them to exit a location if it becomes unprofitable or unsuitable, but it also introduces a degree of uncertainty for the franchisee, who could lose their location despite fulfilling their obligations.
It is important for prospective franchisees to understand the circumstances under which Cicis might exercise this termination option and to assess the potential financial impact of an early lease termination on their business. Franchisees should also consider negotiating terms that provide additional protection or compensation in the event of early termination by Cicis.