Who is responsible for the costs and expenses incurred in enforcing the Cicis Guaranty?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions contained in Section 17.E (Jurisdiction and Venue; Governing Law), Section 17.F (Internal Dispute Resolution Program), and Section 17. G (Waiver of Damages; Waiver of Jury Trial; Limitation of Liability) 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 22 — CONTRACTS (FDD pages 64–65)
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 in connection with enforcing the terms of the Guaranty. This means that if Cicis has to take legal action or incur other expenses to ensure the Guarantors fulfill their obligations under the Guaranty, the Guarantors must pay Cicis back for those costs.
The Guaranty is a legal agreement where individuals or entities (the Guarantors) promise to be responsible for the financial obligations of the franchisee. This is often required to ensure that Cicis has recourse if the franchisee fails to meet its financial responsibilities under the Franchise Agreement. The fact that the Guarantors must cover Cicis's enforcement costs adds another layer of financial responsibility to the Guaranty.
This provision is fairly standard in franchising, as franchisors typically seek to protect their interests by ensuring they can recover expenses related to enforcing legal agreements. Prospective Cicis franchisees should carefully review the Guaranty and understand the potential financial implications of this clause, especially if they are acting as a Guarantor or if their spouse is a Guarantor, as the spouse's signature can bind the assets of the marital estate to the Guarantor's performance.