Must all monies owed to Cicis and its affiliates be current before a franchisee can transfer their Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) You and your affiliates must not be in default of any provision of this Agreement or of any other agreement with us or any of our affiliates, and you and your affiliates must have substantially and timely complied with the terms and conditions of such agreements during their respective terms;
- (4) You must satisfy all monetary obligations owed to us and our affiliates under this Agreement and any other agreement between you or any of your affiliates and us or any of our affiliates;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a franchisee must satisfy all monetary obligations owed to Cicis and its affiliates before a transfer of the franchise can occur. This requirement is outlined in Item 22, which discusses the conditions for franchise agreement renewals.
Specifically, the franchisee and their affiliates must not be in default of any provision within the franchise agreement or any other agreement with Cicis or its affiliates. Furthermore, all monetary obligations owed to Cicis and its affiliates under the Franchise Agreement or any other agreement must be satisfied. This means that any outstanding fees, royalties, or other payments must be current before Cicis will approve a transfer.
This requirement protects Cicis's financial interests and ensures that the new franchisee starts with a clean financial slate. For a prospective franchisee looking to buy an existing Cicis location, it is crucial to verify that the seller has met all financial obligations to Cicis. Failure to do so could delay or even prevent the transfer of the franchise.