For Cicis, what obligations survive the expiration or termination of the agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
You and, as applicable, your owners and all such other persons or Business Entities who are bound under the terms of this Agreement must immediately upon the expiration or termination of this Agreement, cease to directly or indirectly exercise or attempt to exercise any of the rights granted to you under this Agreement, comply with all obligations that either expressly survive or by their nature are intended to survive the expiration or termination of this Agreement, and refrain from interfering or attempting to interfere with our or our Affiliates' relationships with any vendors, franchisees or consultants or engage in any other activity which might injure the goodwill of the Marks or the System.
B. CONTINUING OBLIGATIONS.
All of our and your (and your owners') obligations which expressly or by their nature survive this Agreement's expiration or termination will continue in full force and effect subsequent to and notwithstanding its expiration or termination and until they are satisfied in full or by their nature expire, including, without limitation, all obligations relating to non-disparagement, noncompetition, non-interference, confidentiality, and indemnification.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, upon expiration or termination of the agreement, franchisees must immediately cease exercising any rights granted to them under the agreement. They must also comply with all obligations that either expressly survive or are intended to survive the termination or expiration of the agreement. Additionally, franchisees must not interfere with Cicis's relationships with vendors, franchisees, or consultants, or engage in any activity that could harm the goodwill of the Cicis brand or system.
These continuing obligations extend to both the franchisee and their owners and include, without limitation, all obligations relating to non-disparagement, noncompetition, non-interference, confidentiality, and indemnification. These obligations remain in full effect even after the agreement's expiration or termination until they are fully satisfied or naturally expire.
This means that even after a Cicis franchise agreement ends, the franchisee is still bound by certain restrictions and responsibilities. These primarily relate to protecting Cicis's brand, confidential information, and business relationships. Franchisees should carefully review these clauses to understand the full scope of their post-termination obligations, as violating them could lead to legal action by Cicis.