Who is required to sign the Guaranty for a Cicis franchise transfer?

According to the 2025 Cicis Franchise Disclosure Document, in the event of a franchise transfer, each transferee and all of its direct and indirect owners, along with their respective spouses, must execute and deliver a copy of Cicis' then-current form of Guaranty. This Guaranty ensures that these individuals and entities are personally bound, jointly and severally, by all provisions of the Franchise Agreement. However, Cicis retains the discretion to require the then-current form of Area Development Agreement and any other ancillary agreements instead of the Guaranty.

This requirement ensures that Cicis has recourse to the personal assets of the new owners and their spouses, providing an additional layer of security for the franchisor. By requiring the owners and their spouses to sign the Guaranty, Cicis aims to ensure that the new ownership is fully committed to upholding the obligations and responsibilities outlined in the Franchise Agreement. This is a common practice in franchising, as it protects the franchisor's interests and the integrity of the brand.

For a prospective Cicis franchisee, this means that if they plan to transfer their franchise in the future, the individuals or entities acquiring the franchise, along with their owners and spouses, will need to be prepared to sign a personal guaranty. This is a significant commitment, as it puts their personal assets at risk should the franchise fail to meet its obligations. Franchisees should carefully consider this requirement and ensure that any potential transferees are fully aware of the implications before proceeding with a transfer.