How is 'ownership interest' defined in the Cicis Franchise Agreement?

According to Cicis's 2025 Franchise Disclosure Document, an 'ownership interest' is defined as the percentage of voting shares or other voting rights. This percentage is calculated by dividing 100% of the ownership interests by the total number of owners. This definition is important for franchisees to understand, as it clarifies how voting rights and ownership are distributed among the owners of the franchise.

This definition is relevant when considering the requirements for the Managing Owner. The Managing Owner must own and maintain at least 25% of the direct ownership interests in the franchise. This ensures that the Managing Owner has a significant stake in the business and is motivated to effectively manage the franchise.

Understanding the definition of 'ownership interest' is crucial for compliance with the Franchise Agreement, especially concerning the Managing Owner's responsibilities and the transfer of ownership interests. Franchisees should ensure they fully understand these terms to avoid potential breaches of the agreement.