Are there any fees associated with assigning the lease to a Permitted Assignee for a Cicis restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
the Franchisee is in default under the Lease, upon thirty (30) days prior written notice to Landlord, to sublet, assign or otherwise transfer its interest in the Lease to Franchisor or Franchisor's affiliate, as the case may be, or to any entity with which Franchisor may merge or consolidate, or to any person or entity which is an authorized franchisee of Franchisor (each, a "Permitted Assignee"), without Landlord's consent. Following such an assignment, a Permitted Assignee also may sublet, assign or otherwise transfer its interest in the Lease to another Permitted Assignee without the consent of Landlord. There will be no fee or expense charged in connection with such transfers.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee is in default under the lease, they can sublet, assign, or transfer their interest in the lease to Cicis, its affiliate, an entity Cicis merges or consolidates with, or an authorized Cicis franchisee, referred to as a "Permitted Assignee." The document specifies that there will be no fees or expenses charged for these transfers to a Permitted Assignee.
This is favorable for a Cicis franchisee because it provides a cost-free option to transfer the lease under specific circumstances, such as a default. This clause ensures that franchisees are not burdened with additional costs when transferring the lease to entities affiliated with or approved by Cicis.
However, it is important to note that this fee waiver applies only to transfers to a Permitted Assignee. If the franchisee wishes to assign the lease to another party who is not a Permitted Assignee, standard assignment fees may apply as per the lease agreement with the landlord. Franchisees should review their lease agreement carefully to understand the conditions and potential costs associated with lease assignments to non-Permitted Assignees.