What is the timeframe a Cicis franchisee has to vacate an attachment, seizure, writ, warrant, or levy on their restaurant to avoid termination?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you (or any of your owners) file a petition in bankruptcy or a petition in bankruptcy is filed against you; you make an assignment for the benefit of creditors or admit in writing your insolvency or inability to pay your debts generally as they become due; you consent to the appointment of a receiver, trustee, or liquidator of all or the substantial part of your property; any of your or your Affiliates' Restaurants are attached, seized, subjected to a writ or distress warrant, or levied upon, unless the attachment, seizure, writ, warrant, or levy is vacated within 30 days; or any order appointing a receiver, trustee, or liquidator of your or your Affiliates' Restaurants are not vacated within 30 days following the order's entry;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, a franchisee has 30 days to vacate any attachment, seizure, writ, warrant, or levy on their restaurant. If the franchisee fails to do so within this timeframe, Cicis has grounds to terminate the Franchise Agreement. This condition also applies to any of the franchisee's or their affiliates' restaurants. Similarly, if a court order appointing a receiver, trustee, or liquidator for the restaurant is not vacated within 30 days of its entry, Cicis can terminate the agreement.
This provision protects Cicis from potential financial instability or legal issues affecting a franchisee's operations. By setting a 30-day limit, Cicis ensures that franchisees promptly address any legal or financial encumbrances that could jeopardize the brand's reputation or the restaurant's viability. The franchisee bears the responsibility of resolving these issues swiftly to maintain compliance with the Franchise Agreement and avoid termination.
For a prospective Cicis franchisee, this means maintaining diligent oversight of their restaurant's financial and legal standing. It is crucial to have contingency plans in place to address any unexpected attachments, seizures, or legal actions promptly. Understanding this requirement is essential for franchisees to manage their business effectively and safeguard their investment in the Cicis franchise.