What is the purpose of the Representations and Acknowledgment Statement for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
have them help me understand these documents. I have also been advised to consult with other franchisees regarding the risks associated with the purchase of the franchise. INITIAL: Neither the Franchisor nor any of its officers, employees or agents (including any franchise broker) has made a statement, promise or assurance to me concerning any matter related to the franchise (including those regarding advertising, marketing, training, support service or assistance provided by Franchisor) that is contrary to, or different from, the information contained in the FDD. INITIAL:
| My decision to purchase the franchise has not been influenced by any oral representations, assurances, warranties, guarantees or promises whatsoever made by the Franchisor or any of its officers, employees or agents (including any franchise broker), including as to the likelihood of success of the franchise. | INITIAL: |
|---|---|
| I have made my own independent determination as to whether I have the capital necessary | INITIAL: |
| to fund the business and my living expenses, particularly during the start-up phase. | |
| PLEASE READ THE FOLLOWING QUESTION CAREFULLY. THEN SELECT YES | INITIAL: |
| OR NO AND PLACE YOUR INITIALS WHERE INDICATED. |
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the Representations and Acknowledgment Statement serves to confirm that the franchisee's decision to invest in a Cicis franchise is based on their own independent evaluation and not solely on representations made by Cicis. This statement requires the franchisee to acknowledge that they were not influenced by any oral representations, assurances, warranties, guarantees, or promises from Cicis or its agents regarding the potential success of the franchise.
The statement also requires the franchisee to confirm that they have independently determined they possess the necessary capital to fund the business and cover living expenses, particularly during the initial start-up phase. Furthermore, the franchisee must disclose whether they received any information from Cicis or its representatives concerning actual, average, projected, or forecasted sales, revenues, income, profits, or earnings of the franchise. If such information was received, the franchisee is required to describe it in detail.
This acknowledgment is crucial for Cicis as it protects them from potential future claims by franchisees who might argue they were misled or unduly influenced by overly optimistic projections or promises. By signing this statement, the franchisee affirms they conducted their own due diligence and made an informed decision based on their own assessment of the risks and opportunities associated with the Cicis franchise. This is a standard practice in franchising, ensuring both parties have a clear understanding of the basis upon which the franchise agreement is entered.