Which section of the Cicis Area Development Agreement discusses opening obligations?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
------------------------------------------------------------------------------------------------------| | | Area Development Agreement – Section 6.B. | If you (or any of your owners, as applicable) (i) have made or make any material misrepresentation or omission in the application materials; (ii) you fail to comply with the Development Schedule; (iii) make or attempt to make an unpermitted transfer; (iv) fail to comply with 3 or more of your or their obligations during any 12 consecutive month period or on 2 or more separate occasions within any 6 consecutive month period fail to comply with the same obligation under the Area Development Agreement; (v) become insolvent; (vi) fail to comply with anti-terrorism laws, ordinances, regulations and Executive Orders; (vii) fail to comply with any other provision of this Agreement and do not correct the failure within 30 days after we deliver written notice of the failure to you; (viii) or an affiliate fails to comply with any other agreement with us or our affiliate, including any Franchise Agreement, unless the failure is timely and completely cured within any cure period provided under the applicable agreement); or (ix) you (or any of your owners) engage in any conduct which, in our opinion, adversely affects the reputation of Cicis Restaurants or the goodwill associated with the Marks. | | i. Franchisee's obligations on termination/ non-renewal | Franchise Agreement – Section 16 | You must immediately (i) cease operating the applicable Cicis Restaurant;
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–31)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, Item 17 details several sections of the Area Development Agreement that pertain to franchisee obligations. Specifically, Section 6.B. outlines potential defaults related to opening obligations.
This section indicates that a franchisee may be in default of the Area Development Agreement if they fail to comply with the Development Schedule. Additionally, defaults can occur if the franchisee makes any material misrepresentation or omission in the application materials. These defaults are considered 'cause' for termination if not corrected within 30 days of written notice from Cicis.
Prospective franchisees should carefully review Section 6.B. of the Area Development Agreement, understanding the specific timelines and requirements for opening restaurants to avoid potential defaults and ensure compliance with Cicis' standards. Understanding these obligations is crucial for maintaining a good standing with the franchisor and successfully operating the franchise.