factual

Is it permissible under the Cicis agreement to join any claim of an unaffiliated third-party in a proceeding?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

WE AND YOU AGREE THAT ANY PROCEEDING WILL BE CONDUCTED ON AN INDIVIDUAL BASIS AND THAT ANY PROCEEDING BETWEEN US AND ANY OF OUR AFFILIATES, OR OUR AND THEIR RESPECTIVE SHAREHOLDERS, OFFICERS, DIRECTORS, AGENTS, AND EMPLOYEES, ON THE ONE HAND, AND YOU OR YOUR OWNERS, GUARANTORS, AFFILIATES, AND EMPLOYEES, ON THE OTHER HAND, MAY NOT BE: (I) CONDUCTED ON A CLASS-WIDE BASIS, (II) COMMENCED, CONDUCTED OR CONSOLIDATED WITH ANY OTHER PROCEEDING, (III) JOINED WITH ANY CLAIM OF AN UNAFFILIATED THIRD-PARTY, OR (IV) BROUGHT ON YOUR BEHALF BY ANY ASSOCIATION OR AGENT.

Source: Item 23 — RECEIPTS (FDD pages 65–263)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, franchisees are prohibited from joining any claim of an unaffiliated third party in a proceeding against Cicis. The agreement specifies that any proceeding between Cicis and its affiliates, and their respective shareholders, officers, directors, agents, and employees, on one hand, and the franchisee, their owners, guarantors, affiliates, and employees, on the other hand, must be conducted on an individual basis.

This means that franchisees cannot participate in class-action lawsuits against Cicis, nor can they consolidate their legal claims with those of other parties. This also prevents franchisees from having an association or agent bring a claim on their behalf. The only way a franchisee can bring a claim is individually.

This clause is intended to prevent Cicis from facing large, consolidated lawsuits and to ensure that any legal disputes are handled on a case-by-case basis. For a prospective franchisee, this means that if they have a legal issue with Cicis, they must pursue it independently and cannot rely on joining forces with other franchisees or third parties. This could potentially increase the cost and complexity of pursuing a legal claim against the franchisor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.