What obligations survive the expiration or termination of the Cicis Franchise Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
f terminating this Agreement terminate or modify any territorial rights or protection granted to you in Section 2.B. of this Agreement, reduce the size of your Development Area, reduce the number of Restaurants listed in the Development Schedule, and/or pursue any other remedy we may have at law or in equity. Our exercise of any of our options under this Section will not constitute a waiver by us to exercise our option to terminate this Agreement at any time with respect to a subsequent event of default of a similar or different nature and will not obligate us to refund any portion of the Development Fee.
7. RIGHTS AND OBLIGATIONS ON TERMINATION OR EXPIRATION OF THIS AGREEMENT.
A. YOUR OBLIGATIONS.
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 Affiliat
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, upon expiration or termination of the Franchise Agreement, franchisees (and their owners) must immediately cease exercising any rights granted under the agreement. They must also comply with all obligations that either expressly survive or by their nature are intended to survive the expiration or termination of the agreement. Furthermore, franchisees must not interfere with Cicis' relationships with vendors, franchisees, or consultants, or engage in any activity that might harm the goodwill of the Cicis brand or system. These stipulations ensure a clean break and protect Cicis' interests after a franchise relationship ends.
Several specific obligations continue after the agreement's expiration or termination. These include obligations relating to non-disparagement, non-competition, non-interference, confidentiality, and indemnification. This means that even after the franchise ends, the franchisee is still bound by these duties, which are designed to protect Cicis' business and reputation. For example, the franchisee cannot make negative statements about Cicis, compete with Cicis, interfere with its business relationships, or disclose confidential information.
The continuation of these obligations is a standard practice in franchising. It is designed to protect the franchisor's brand, trade secrets, and business relationships. Prospective Cicis franchisees should carefully review these continuing obligations to understand the full scope of their responsibilities, even after the franchise agreement concludes. Understanding these terms is crucial for planning an exit strategy or considering the long-term implications of the franchise agreement.
In summary, the Cicis Franchise Agreement includes several obligations that extend beyond the termination or expiration of the agreement. These obligations primarily relate to protecting Cicis' brand, confidential information, and business relationships. Franchisees should be aware of these continuing obligations and factor them into their decision-making process.