What specific section of the Cicis Franchise Agreement outlines the obligation to pay Lost Revenue Damages?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Termination; Lost Revenue Damages. Provided you and your affiliates have been in Good Standing from the Effective Date and remain so during the notice period specified below, you may, at any time prior to [insert date that is the 18-month anniversary of the Effective Date], and without cause, deliver (as defined in the Franchise Agreement) a written notice to us of your election to terminate the Franchise Agreement. Termination will be effective at the close of business on the 30th day following delivery of your written notice of termination, and you will thereafter be required to comply with all obligations under the Franchise Agreement that are either triggered by or that expressly or by implication survive termination (except the obligation to pay Lost Revenue Damages under Section 16.M of the Franchise Agreement).
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the obligation to pay Lost Revenue Damages is detailed in Section 16.M of the Franchise Agreement. However, there is an exception to this obligation under certain conditions.
Specifically, if a franchisee and their affiliates have been in Good Standing from the Effective Date of the agreement and remain so during a specified notice period, the franchisee has the option to terminate the Franchise Agreement without cause. This termination must occur before the 18-month anniversary of the Effective Date by providing written notice.
If these conditions are met and the franchisee terminates the agreement as described, they will be relieved of the obligation to pay Lost Revenue Damages as outlined in Section 16.M of the Franchise Agreement. This provides a limited opportunity for franchisees to exit the agreement early without incurring this particular financial penalty, provided they remain in compliance with the agreement's terms up to that point.