Is obtaining Cicis' written consent a condition for any transfer of ownership interest in a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
days), assess a reasonable data collection fee for so long as the information or report remains outstanding. Our assessment and collection of the data collection fee will be in addition to all other rights and remedies we have.
5. TRANSFER.
A. BY US.
We have the right to delegate the performance of any portion or all of our rights and obligations under this Agreement to third-party designees. You represent that you have not signed this Agreement in reliance on any particular person or entity remaining with us in any capacity. We may change our ownership or form or assign this Agreement and any other agreement to a third party without restriction.
B. BY YOU OR YOUR OWNERS.
Your rights and duties under this Agreement are personal to you (or your owners if you are a Business Entity), and we have granted you the Development Rights in reliance upon our perceptions of your (or your owners') individual or collective character, skill, aptitude, attitude, business ability, and financial capacity. Accordingly, neither you nor any owners, nor any of your or their permitted successors or assigns, shall sell, assign, transfer, convey, give away, pledge, mortgage, or otherwise dispose of or encumber this Agreement (or any direct or indirect interest
in this Agreement), the Development Rights, or any direct or indirect ownership interest in you (regardless of its size) (each, a "Transfer"), without our prior written consent. Any Transfer without our prior written approval is a material breach of this Agreement and has no effect. We may reject any request to consent to the use of the Development Rights or this Agreement as collateral for the repayment of any loan.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees or their owners must obtain prior written consent from Cicis before transferring any ownership interest. This includes selling, assigning, transferring, conveying, giving away, pledging, mortgaging, or otherwise disposing of or encumbering the Franchise Agreement, Development Rights, or any direct or indirect ownership interest in the franchisee, regardless of size. Transferring without prior written approval constitutes a material breach of the agreement and is considered ineffective.
Cicis may consider any information it deems necessary to assess a proposed transfer. If Cicis approves a transfer, it may condition its approval in any manner it deems necessary to protect the Cicis brand and its interests in the system and the agreement.
This requirement is typical in franchising, as franchisors want to ensure that any new owners meet their standards and are capable of maintaining the brand's reputation and operational consistency. Prospective Cicis franchisees should be aware of these conditions and the potential costs and requirements associated with transferring their franchise in the future, including a transfer fee of $7,500 plus reimbursement for reasonable out-of-pocket expenses.