Are the remedies available to Cicis for delinquent or understated payments in addition to other remedies?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ries and any defaults), and you hereby authorize your bank, other lenders, and vendors to provide such information to us and our affiliates; and
(6) you will submit to us or our designee, for review or auditing, such other forms, reports, records, information, and data as we reasonably designate, in the form and at the times and places we reasonably require, upon request and as specified from time to time in writing, including a monthly game room revenue report.
C. Audits. We or our designee have the right at all reasonable times to review, audit, examine, and copy your books and records as we may require without cause or prior notice you. If any payments required to be made to us under this Agreement are delinquent, or if an inspection reveals that such payments have been understated in any way, then you will immediately pay us the amount overdue or understated upon demand with interest determined in accordance with the provisions of Section 4.G. If we decided to conduct an audit because of your failure to provide any records or reports you are required to provide us or if an audit discloses an understatement in any way of 3% or more, then you will also reimburse us for all costs and expenses connected with the audit (including reasonable accounting and attorneys' fees). These remedies will be in addition to any other remedies we may have at Law or in equity.
D. No Waiver.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis has multiple avenues for recourse if a franchisee is delinquent or understates payments. Specifically, Cicis can conduct audits of a franchisee's records at any reasonable time, without needing to provide a reason or prior notice. If these audits reveal that payments are overdue or have been understated, the franchisee must immediately pay the due amount along with interest as determined by Section 4.G of the agreement.
Furthermore, if Cicis initiates an audit because the franchisee failed to provide required records or reports, or if the audit uncovers an understatement of 3% or more, the franchisee is responsible for reimbursing Cicis for all audit-related costs, including accounting and attorney's fees. Importantly, the FDD states that these remedies available to Cicis are in addition to any other legal or equitable remedies that Cicis might pursue.
Additionally, the franchise agreement specifies that all rights and remedies available to both parties are cumulative and not alternative. This means that Cicis's ability to pursue one remedy does not prevent them from pursuing any other remedies available under the agreement, at law, or in equity, should a franchisee breach, fail, or default on any term or condition. This also applies to any other agreement between the franchisee (or its affiliates) and Cicis (or its affiliates).
This comprehensive approach to remedies ensures that Cicis has a wide range of options to address any issues of non-compliance or financial discrepancies, protecting their interests and the integrity of the franchise system. Prospective franchisees should be aware of these terms and ensure they maintain accurate records and timely payments to avoid triggering these remedies.