What terms and conditions will be included in the lease that Cicis enters into for the Restaurant premises?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ng rate charged by Wells Fargo National Association or its successors in interest, determined as of the closing date with annual adjustments based on the prime rate charged on each anniversary date. The first payment will be due on the first day of the second calendar month following closing and the remaining payments on the first day of each month thereafter. On the first payment date,
interest from the date of closing will also be paid. The purchase price will be allocated among the Option Assets in the manner we prescribe.
- (4) If you do not own, or we elect not to purchase, your Restaurant premises or building, then we will have the option to enter into a lease for them for a term of not more than 10 years, with an option to extend for an additional 10-year term. The lease will contain the terms and conditions contained in the form of lease then used by us in connection with Cicis Restaurants we or our affiliates own and operate. The rental under the lease for the initial 10-year term will be the fair rental value of the property as determined pursuant to agreement or the appraisal procedure described above. Such lease, and any renewals or extensions of such lease, will provide that we or our designee may terminate the lease on not less than 30 days written notice, at any time after the first 12 months of the lease term and that in such event, we or our designee, must pay a sum equal to three months' rent as the sole and exclusive compensation to the landlord.
- (5) For each of the Option Assets, you will deliver to us in a form satisfactory to us, such warranties, deeds, releases of lien, bills of sale, assignments, and such other documents and instruments we deem necessary in order to perfect our title and possession of them and to meet the requirements of all tax and government authorities. If, at the time of closing, you have not obtained all of these certificates and other documents, we may, in our sole discretion, place the purchase price in escrow pending issuance of any required certificates or documents.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if Cicis elects to lease the restaurant premises, the lease term will be for no more than 10 years, with an option to extend for another 10 years. The lease will include terms and conditions that Cicis uses for restaurants that they or their affiliates own and operate. The rental rate for the initial 10-year term will be the fair rental value of the property, determined either by agreement or through an appraisal procedure.
Specifically, if an appraisal is needed to determine fair market value, both Cicis and the franchisee will select a certified and independent appraiser. If the franchisee fails to select an appraiser within 10 days of receiving notice, Cicis's chosen appraiser will determine the fair market value alone. Within 15 days of both appraisers being selected, they will each submit a proposed fair market value, and the average of the two submissions will be considered final and binding. Each party is responsible for covering the fees and expenses of their selected appraiser.
Additionally, Cicis requires that franchisees must secure possession of the location within 120 days following the effective date of the franchise agreement. Franchisees must provide Cicis with a copy of the proposed lease and obtain their approval before signing it. Cicis will not approve any lease unless it includes a rider in the form attached to the Franchise Agreement as Attachment C. Franchisees are also required to have a lease compliance review conducted by an attorney approved or designated by Cicis, and they will be responsible for the associated attorney's fees.