What is the relationship between the bankruptcy filings described in Cicis's Item 4 and the franchisor's assistance outlined in Item 11?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 4: BANKRUPTCY]
ITEM 4 BANKRUPTCY
U.S. Bankruptcy Court, Northern District of Texas (Dallas) Bankruptcy Petition: 21-30146-sgj11: On January 25, 2021, some of our current and former affiliates, namely, Cici's Holdings, Inc., Awesome Acquisition Company, CAC, CiCi Enterprises, CiCi GP, LLC, CiCi Services, JMC GP, LLC, JMC Restaurant Distribution, LP, and Pizza Parent, LLC, filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. All the debtors share our principal business address. On March 3, 2021, the court approved the debtors' and creditors' pre-packaged Plan of Reorganization, and March 10, 2021, CiCi Enterprises emerged from bankruptcy. On July 2, 2021, the bankruptcy cases against all the petitioners except Pizza Parent, LLC were closed. On August 30, 2024, the case was closed against Pizza Parent, LLC.
Other than this action, no bankruptcy is required to be disclosed in this Item.
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Item 4 discloses that several of Cicis's current and former affiliates filed for Chapter 11 bankruptcy on January 25, 2021. CiCi Enterprises emerged from bankruptcy on March 10, 2021, and the bankruptcy cases against all petitioners were closed by August 30, 2024. Item 11 outlines the assistance Cicis provides to franchisees, including pre-opening and continuing obligations. However, the FDD does not explicitly state how the bankruptcy filings directly impact the franchisor's assistance programs.
While Item 11 details the support Cicis offers, such as site selection review, prototypical architectural plans, training programs, and marketing assistance, it does not mention any modifications or limitations to this assistance as a result of the bankruptcy proceedings. The assistance described in Item 11 appears to be the standard support offered to all franchisees, irrespective of the past bankruptcy filings of Cicis's affiliates.
Prospective franchisees should be aware of the bankruptcy filings and how they might affect Cicis's long-term stability and support capabilities. It would be prudent to inquire directly with Cicis about any potential impact of the bankruptcy on the availability, scope, or quality of the assistance programs outlined in Item 11. Understanding whether the bankruptcy has led to any changes in personnel, resources, or strategic direction related to franchisee support is crucial for making an informed investment decision.