What is the significance of the phrase 'valuable consideration' in the Cicis Reopen Incentive Program Addendum?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
On Smile LLC ("we"), the "Franchisee" identified below ("you"), and your owners who have guaranteed your performance under the Franchise Agreement (collectively, the "Guarantors" and, together with us and you, the "Parties") execute this Reopen Incentive Program Addendum (the "Addendum") to supplement and amend that certain Franchise Agreement identified on Attachment A hereto (as it might have previously been amended, the "Franchise Agreement"). The Effective Date of this Addendum is the date on which we sign below. Capitalized terms used but not defined in this Addendum have the meanings given them in the Franchise Agreement. For valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the phrase 'valuable consideration' appears in the Reopen Incentive Program Addendum. This phrase is a legal term that indicates that all parties involved in the agreement are receiving something of value in exchange for their commitments. In simpler terms, it means that both Cicis and the franchisee are giving up something and gaining something else as part of the agreement to reopen a franchise location. The addendum specifically acknowledges that the receipt and sufficiency of this valuable consideration are recognized by all parties. This acknowledgement is a standard legal practice to ensure that the agreement is binding and enforceable.
For a prospective Cicis franchisee, the 'valuable consideration' clause signifies that the incentives offered by Cicis in the Reopen Incentive Program are not gratuitous. Instead, they are being provided in exchange for the franchisee's commitment to reopen and operate the restaurant. This commitment likely involves investing time, money, and effort into revitalizing the location. The franchisee benefits from reduced fees or other financial incentives, while Cicis benefits from having an additional operating restaurant, which contributes to brand recognition and overall network growth.
The specific details of what constitutes the 'valuable consideration' from the franchisee's perspective are not explicitly detailed in the provided excerpt, but it would typically include the franchisee's agreement to invest in and operate the reopened restaurant for a specified period, adhering to Cicis's standards and procedures. The franchisor's consideration might include reduced franchise fees, royalty fees, or other forms of financial support to facilitate the reopening. The acknowledgment of 'receipt and sufficiency' means that all parties agree that what they are receiving is adequate and satisfactory in exchange for what they are giving up.
It is important for a prospective franchisee to carefully review the entire Reopen Incentive Program Addendum and the Franchise Agreement to fully understand the specific obligations and benefits associated with the program. Understanding the 'valuable consideration' from both sides ensures that the franchisee is aware of their commitments and the corresponding incentives they will receive from Cicis. Consulting with a legal professional is advisable to ensure a complete understanding of the agreement and its implications.