Who is responsible for paying Cicis' enforcement costs related to violations of the agreement after termination?

According to Cicis' 2025 Franchise Disclosure Document, the franchisee is responsible for paying enforcement costs related to violations of the franchise agreement after termination. Specifically, the franchisee must promptly pay all sums owed to Cicis and its subsidiaries or affiliates, including all damages, costs, and expenses, including reasonable attorneys' fees, that Cicis incurs as a result of any default by the franchisee. This obligation remains until paid in full and creates a lien in Cicis' favor against the franchisee's personal property, furnishings, equipment, signs, fixtures, and inventory on the premises at the time of default.

This means that if a Cicis franchisee violates the franchise agreement and Cicis incurs costs to enforce the agreement, such as legal fees, the franchisee is responsible for reimbursing Cicis for these costs. This obligation extends even after the termination of the franchise agreement, ensuring that Cicis can recover expenses incurred due to the franchisee's non-compliance. The FDD clearly states that this obligation gives rise to a lien in Cicis' favor against the franchisee's assets, providing Cicis with a secured interest to ensure payment.

This is a fairly standard clause in franchise agreements. It protects the franchisor from bearing the financial burden of a franchisee's breach of contract. Prospective Cicis franchisees should understand that they are responsible for all costs Cicis incurs to enforce the agreement due to their default, even after the franchise agreement is terminated. This could include not only attorneys' fees but also other expenses related to correcting the franchisee's non-compliance or protecting Cicis' brand and system standards.