What specific obligations under the Cicis Franchise Agreement are triggered by termination?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
You and, as applicable, your owners and all such other persons or Business Entities who are bound under the terms of this Agreement must immediately upon the expiration or termination of this Agreement, cease to directly or indirectly exercise or attempt to exercise any of the rights granted to you under this Agreement, comply with all obligations that either expressly survive or by their nature are intended to survive the expiration or termination of this Agreement, and refrain from interfering or attempting to interfere with our or our Affiliates' relationships with any vendors, franchisees or consultants or engage in any other activity which might injure the goodwill of the Marks or the System.
B. CONTINUING OBLIGATIONS.
All of our and your (and your owners') obligations which expressly or by their nature survive this Agreement's expiration or termination will continue in full force and effect subsequent to and notwithstanding its expiration or termination and until they are satisfied in full or by their nature expire, including, without limitation, all obligations relating to non-disparagement, noncompetition, non-interference, confidentiality, and indemnification.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, franchisees and their owners must immediately cease exercising any rights granted under the agreement. They must also comply with all obligations that expressly survive or are intended to survive the termination. This includes refraining from interfering with Cicis's relationships with vendors, franchisees, or consultants, and avoiding any activity that could harm the goodwill associated with the Cicis brand or system.
Continuing obligations, such as those related to non-disparagement, non-competition, non-interference, confidentiality, and indemnification, remain in full effect even after the agreement's expiration or termination. These obligations persist until they are fully satisfied or naturally expire. This means that even after a franchisee leaves the Cicis system, they are still bound by certain restrictions and responsibilities to protect the brand and its interests.
These post-termination obligations are fairly standard in franchising, as franchisors need to protect their brand, trade secrets, and relationships. Prospective Cicis franchisees should carefully review the specific clauses in the Franchise Agreement that outline these surviving obligations to understand the full scope of their responsibilities even after the franchise relationship ends. Understanding these obligations is crucial for planning an exit strategy or considering future business ventures after leaving the Cicis system.