For Cicis, who is responsible for costs and attorneys' fees related to enforcing the Guaranty?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions contained in Section 9 (Enforcement) of the Agreement, including Section 9.A (Jurisdiction and Venue), Section 9.B (Governing Law) and Section 9.E (Costs and Attorneys' Fees) of the Agreement are incorporated into this Guaranty by reference and shall govern this Guaranty and any disputes between the Guarantors and us. The Guarantors shall reimburse us for all costs and expenses we incur in connection with enforcing the terms of this Guaranty.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Guarantors are responsible for reimbursing Cicis for all costs and expenses Cicis incurs while enforcing the terms of the Guaranty. This means that if Cicis has to take legal action to ensure the Guarantors fulfill their obligations under the Guaranty, the Guarantors must cover Cicis's legal fees and other associated costs.
This provision is significant for potential Cicis franchisees because it outlines the financial responsibility of the Guarantors in the event of a dispute. The Guaranty is a legal agreement where the Guarantors promise to fulfill the obligations of the franchisee if the franchisee fails to do so. By requiring the Guarantors to cover enforcement costs, Cicis aims to protect its financial interests and ensure that it does not bear the burden of legal expenses when enforcing the Guaranty.
For a prospective franchisee, this highlights the importance of carefully selecting and vetting the Guarantors. The Guarantors should be financially stable and willing to accept the responsibility of covering Cicis's enforcement costs. Franchisees should discuss this provision with their legal and financial advisors to fully understand the implications and potential financial risks associated with the Guaranty. This is a fairly standard clause in franchise agreements, intended to protect the franchisor's interests.