Must all monies owed to Cicis, its affiliates, and suppliers be current for Cicis to approve a transfer?
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)
The 2025 Cicis Franchise Disclosure Document states that to renew a franchise agreement, a franchisee must satisfy all monetary obligations owed to Cicis and its affiliates. Specifically, the franchisee and its affiliates must not be in default of any provision of the current agreement or any other agreement with Cicis or its affiliates and must have substantially and timely complied with the terms and conditions of such agreements during their respective terms.
This requirement ensures that franchisees are in good financial standing with Cicis before being granted the opportunity to renew their franchise agreement. It protects Cicis's interests by ensuring that franchisees meet their financial obligations and maintain a positive business relationship.
While the FDD excerpt explicitly mentions this requirement in the context of franchise renewal, it does not specify whether the same condition applies to franchise transfers. Prospective franchisees should seek clarification from Cicis regarding the financial requirements for franchise transfers to fully understand the obligations and conditions involved.