What is Cicis' obligation to close on the purchase of a franchise interest if necessary third-party consents have not been secured?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Anything contained herein to the contrary notwithstanding, however, neither we nor our designee will have any obligation to close unless and until any and all third-party consents deemed necessary by us or our designee, including any consent of the landlord for your Restaurant premises to the assignment of the lease therefor, or to the transfer of the transferor's interest in a corporate or partnership lessee, have been secured.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, neither Cicis nor its designee is obligated to close on the purchase of a franchise interest until all necessary third-party consents have been secured. These consents include any landlord consent required for the assignment of the restaurant premises lease or the transfer of the transferor's interest in a corporate or partnership lessee.
This provision protects Cicis by ensuring that the transfer of the franchise can proceed smoothly and without legal complications. Securing landlord consent is a common requirement in franchise agreements, as the franchisor wants to ensure that the franchisee has a secure location for operating the business. Without these consents, Cicis could face legal challenges or be unable to operate the franchise at the desired location.
For a prospective franchisee, this means that the purchase of a Cicis franchise interest is contingent upon obtaining all necessary third-party approvals. It is crucial to ensure that all such consents are in place before proceeding with the closing to avoid potential delays or complications. This requirement also highlights the importance of maintaining a good relationship with the landlord, as their consent is essential for transferring the lease.