What is the term length of the new franchise agreement that the transferee must execute when buying a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) the transferee must execute, for a term ending on the expiration date of this Agreement and with such renewal terms as may be provided by this Agreement, our thencurrent standard form of franchise agreement and all other ancillary agreements as we may require, which agreements will supersede this Agreement and its ancillary documents in all respects and the terms of which agreements may differ from the terms of this Agreement, including a higher percentage Royalty Fee and Fund Contribution or expenditure requirement; provided, however, that the transferee will not be required to pay any initial franchise fee; and, if the transferee is legal entity, such of transferee's owners as we may designate must execute such agreement and jointly assume and guarantee the entity's performance of all such obligations, covenants, and agreements;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a transferee (buyer) of an existing Cicis franchise must execute Cicis's then-current standard form of franchise agreement. The term of this new agreement will end on the expiration date of the original agreement, including any renewal terms provided by the original agreement.
This means the new franchise agreement effectively picks up where the old one leaves off. The terms of the new agreement may differ from the original, potentially including higher royalty fees or fund contribution requirements. However, the transferee is not required to pay an initial franchise fee.
This condition ensures that Cicis maintains consistent standards and has the opportunity to update agreement terms with each transfer. For a prospective franchisee, this means understanding the remaining term and potential changes in fees is crucial when considering purchasing an existing Cicis franchise.