What reports regarding outstanding loans must a Cicis franchisee provide, and when are they due?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) by January 15, April 15, July 15 and October 15 of each calendar year, reports on the status (including the outstanding balance, then-current payment amounts, and whether such loan is in good standing) of any loans outstanding as of the previous calendar quarter for which your Restaurant or any of your Restaurant's assets are used as collateral.
You must also deliver to us, within five (5) days after your receipt, copies of any default notices you receive from any of such lenders.
You agree that we or our affiliates may contact your banks, other lenders, and vendors to obtain information regarding the status of loans of the type described herein and your accounts (including payment histories and any defaults), and you hereby authorize your bank, other lenders, and vendors to provide such information to us and our affiliates;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees must provide reports on the status of any outstanding loans for which the restaurant or its assets are used as collateral. These reports must include the outstanding balance, current payment amounts, and whether the loan is in good standing. These reports are due four times per year, specifically by January 15, April 15, July 15, and October 15 of each calendar year, covering the status of loans as of the previous calendar quarter.
In addition to the quarterly reports, Cicis franchisees are also required to provide copies of any default notices they receive from lenders within five days of receipt. This ensures that Cicis is promptly informed of any potential financial difficulties the franchisee may be facing.
Furthermore, the FDD states that Cicis or its affiliates have the right to contact the franchisee's banks, lenders, and vendors to obtain information about the status of loans and accounts, including payment histories and any defaults. The franchisee authorizes these institutions to release such information to Cicis. This level of oversight allows Cicis to monitor the financial health of its franchisees and potentially offer support or intervention if needed, which is a fairly standard practice in franchising to protect the brand and the network as a whole.