Does Cicis have to offer the same franchise agreement to a transferee as the original franchisee?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) the transferee must execute, for a term ending on the expiration date of this Agreement and with such renewal terms as may be provided by this Agreement, our thencurrent standard form of franchise agreement and all other ancillary agreements as we may require, which agreements will supersede this Agreement and its ancillary documents in all respects and the terms of which agreements may differ from the terms of this Agreement, including a higher percentage Royalty Fee and Fund Contribution or expenditure requirement; provided, however, that the transferee will not be required to pay any initial franchise fee; and, if the transferee is legal entity, such of transferee's owners as we may designate must execute such agreement and jointly assume and guarantee the entity's performance of all such obligations, covenants, and agreements;
(f) the transferee must demonstrate to our satisfaction that it meets the criteria we then consider when reviewing a prospective franchisee's application for a Franchise;
(g) the transferee, at its expense, will renovate, modernize, and otherwise upgrade your Restaurant and, if applicable, any Restaurant delivery vehicles to conform to the then current System Standards, and will complete the upgrading and other requirements within the time period we reasonably specify;
(h) the transferor will remain liable for all of its obligations to us in connection with this Agreement and your Restaurant incurred prior to the effective date of the transfer and will execute any and all instruments we reasonably request to evidence such liability;
(i) at the transferee's expense, the transferee and all Persons required under the applicable franchise agreement to have completed our training programs must complete any such training programs upon such terms and conditions as we may reasonably require;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a transferee might not receive the same franchise agreement terms as the original franchisee. Cicis requires the transferee to execute their then-current standard form of franchise agreement, which will supersede the original agreement in all respects.
This new agreement's terms may differ from the original, potentially including higher royalty fees or fund contribution requirements. However, the transferee will not be required to pay an initial franchise fee. The transferee must also demonstrate that they meet Cicis's current criteria for prospective franchisees.
Furthermore, the transferee is responsible for renovating and upgrading the restaurant to meet Cicis's current system standards within a specified timeframe. The transferee and any individuals required to complete training programs must also fulfill these requirements at their own expense. The original franchisee (transferor) remains liable for all obligations incurred before the transfer date and must comply with non-compete provisions even after the transfer.