What section of the Cicis Franchise Agreement addresses 'Default and Termination' and how is it modified by the Maryland Rider?

According to Cicis's 2025 Franchise Disclosure Document, Section 15.A.(2)(a) of the Franchise Agreement addresses 'Default and Termination'. The Maryland Rider modifies this section by adding a provision that states this section may not be enforceable under federal bankruptcy law. This means that while the franchise agreement outlines specific conditions under which Cicis can terminate the agreement due to franchisee default, these conditions might not hold up if the franchisee declares bankruptcy. Federal bankruptcy law could override the terms of the franchise agreement, potentially preventing Cicis from terminating the agreement even if the franchisee is in default.

This modification is significant for prospective Cicis franchisees in Maryland because it highlights a potential limitation on Cicis's ability to enforce the default and termination provisions in the event of the franchisee's bankruptcy. It suggests that the standard default and termination clauses in the franchise agreement are subject to federal bankruptcy law, which could offer some protection to franchisees facing financial difficulties. However, it is important to note that the rider does not eliminate the default and termination provisions altogether; it simply acknowledges that their enforceability may be limited in bankruptcy proceedings.

For a prospective franchisee, this information underscores the importance of understanding both the franchise agreement and federal bankruptcy law. It would be prudent to consult with legal counsel to fully understand the implications of this modification and how it might affect their rights and obligations as a Cicis franchisee in Maryland. Additionally, it would be wise to inquire with Cicis about specific instances where this provision has been invoked and how the company has handled such situations in the past.