Does the new franchise agreement for the transferee of a Cicis franchise include renewal terms?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) the transferee must execute, for a term ending on the expiration date of this Agreement and with such renewal terms as may be provided by this Agreement, our thencurrent standard form of franchise agreement and all other ancillary agreements as we may require, which agreements will supersede this Agreement and its ancillary documents in all respects and the terms of which agreements may differ from the terms of this Agreement, including a higher percentage Royalty Fee and Fund Contribution or expenditure requirement; provided, however, that the transferee will not be required to pay any initial franchise fee; and, if the transferee is legal entity, such of transferee's owners as we may designate must execute such agreement and jointly assume and guarantee the entity's performance of all such obligations, covenants, and agreements;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a transferee—someone who is buying an existing Cicis franchise—must execute the then-current standard form of the franchise agreement. This agreement will be for a term ending on the original expiration date of the franchise agreement.
Importantly, the new franchise agreement includes such renewal terms as may be provided by the agreement. This means that the transferee's agreement will specify whether or not the franchise can be renewed, and under what conditions. The terms of the new agreement may differ from the original agreement, potentially including a higher Royalty Fee and Fund Contribution or expenditure requirement.
However, the transferee is not required to pay any initial franchise fee. The transferee must also demonstrate that they meet Cicis's current criteria for prospective franchisees. Additionally, they will be responsible for renovating and upgrading the restaurant to meet the current System Standards within a specified timeframe.