What obligations survive termination of the Cicis Franchise 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 termination or expiration of the Franchise Agreement, franchisees must immediately cease exercising any rights granted under the agreement. They must also comply with all obligations that expressly survive or are intended to survive termination. This includes refraining from interfering with Cicis's relationships with vendors, franchisees, or consultants, and avoiding any activity that could harm the goodwill associated with Cicis's marks or system.
Continuing obligations for both Cicis and the franchisee (and their owners) that survive the agreement's expiration or termination will remain in full effect until satisfied or expired by their nature. These obligations include, but are not limited to, those relating to non-disparagement, noncompetition, non-interference, confidentiality, and indemnification. This means that even after the franchise agreement ends, the franchisee must continue to uphold these responsibilities.
In practical terms, this means a former Cicis franchisee cannot open a competing pizza buffet restaurant nearby, disclose confidential information about Cicis's operations, or make disparaging remarks about the brand. These post-termination obligations are designed to protect Cicis's brand, trade secrets, and business relationships even after an individual franchise ceases to operate. Franchisees should carefully consider these long-term responsibilities before entering into a franchise agreement.