What is the timeframe for a Cicis franchisee to file a supersedeas bond to prevent termination due to a judgment?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) you or any Person who guarantees your obligations under this Agreement (i) admits, in writing, your or its insolvency or inability to pay your or its debts as they become due, (ii) makes a general assignment for the benefit of creditors; (iii) files or has filed against you or it a petition under any bankruptcy law, receivership or custodian law, insolvency law, foreclosure law, or any similar Law or statute of the United States or any state thereof intended to protect the rights of your or its creditors; (iv) has a final judgment against you or it that remains unsatisfied or of record for 30 days or longer (unless supersedeas bond is filed); or (v) is dissolved or wound down;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, a franchisee has 30 days to file a supersedeas bond after a final judgment is entered against them (or any person who guarantees their obligations) to avoid potential termination of the franchise agreement. A supersedeas bond is a type of surety bond that suspends the enforcement of a judgment while an appeal is pending.
This means that if a court enters a final judgment against a Cicis franchisee, the franchisor, Cicis, could potentially terminate the franchise agreement. However, if the franchisee files a supersedeas bond within 30 days, this action would prevent Cicis from terminating the agreement while the franchisee appeals the judgment. The bond essentially provides assurance that the judgment will be paid if the appeal is unsuccessful.
It is important for prospective Cicis franchisees to understand this provision, as failing to file a supersedeas bond within the specified timeframe could result in the loss of their franchise. Franchisees should consult with legal counsel to understand their rights and obligations in the event of a judgment against them.