What is the required notice period for a Cicis franchisee or franchisor to sublet or assign the lease?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
the Franchisee is in default under the Lease, upon thirty (30) days prior written notice to Landlord, to sublet, assign or otherwise transfer its interest in the Lease to Franchisor or Franchisor's affiliate, as the case may be, or to any entity with which Franchisor may merge or consolidate, or to any person or entity which is an authorized franchisee of Franchisor (each, a "Permitted Assignee"), without Landlord's consent. Following such an assignment, a Permitted Assignee also may sublet, assign or otherwise transfer its interest in the Lease to another Permitted Assignee without the consent of Landlord. There will be no fee or expense charged in connection with such transfers.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a Cicis franchisee is in default under their lease, the franchisor can sublet, assign, or transfer the lease to a Permitted Assignee by providing thirty (30) days prior written notice to the landlord. A Permitted Assignee includes Cicis itself, its affiliates, any entity Cicis merges or consolidates with, or any authorized Cicis franchisee. Following such an assignment, a Permitted Assignee can also sublet, assign, or transfer its interest in the lease to another Permitted Assignee without the landlord's consent. There are no fees or expenses charged for these transfers.
This clause provides Cicis with significant flexibility and control over the restaurant location, even if a franchisee is struggling. It allows Cicis to maintain the location within the franchise system by transferring the lease to a more successful franchisee or assuming the lease themselves. This protects Cicis's brand presence and minimizes disruption to customers.
For a prospective Cicis franchisee, this means that if they default on their lease, Cicis has the right to step in and take over the lease. While this could prevent the franchisee from losing their entire investment immediately, it also means they could lose control of their restaurant location. The franchisee should carefully review the conditions under which Cicis can exercise this right and understand their obligations under the lease agreement.