What topics are addressed in the 'Term and Renewal' section of the Cicis franchise agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
sooner terminated as provided in Section 15, the term of this Agreement will begin on the Effective Date and end at the close of regular business on the 10th anniversary thereof ("Term").
B. Renewal. You may, at your option, renew your right to own and operate your Restaurant for (1) one term of 10 years to commence immediately following expiration of the Term, subject to your compliance with the following conditions:
(1) You must give us written notice of your election to renew not less than six (6) months and not more than nine (9) months before the end of the Term;
(2) You must, at your expense, do all things necessary to ensure that the interior and exterior premises of your Restaurant and all assets used in the operation of your Restaurant comply with all System Standards (defined below) and reflect the then-current standards and image of Cicis Restaurants;
(3) You and your affiliates must not be in default of any provision of this Agreement or of any other agreement with us or any of our affiliates, and you and your affiliates must have substantially and timely complied with the terms and conditions of such agreements during their respective terms;
(4) You must satisfy all monetary obligations owed to us and our affiliates under this Agreement and any other agreement between you or any of your affiliates and us or any of our affiliates;
(5) You must present to us satisfactory evidence that you have the right to remain in possession of the premises of your Restaurant during the renewal term or obtain our consent to a new site for your Restaurant. Any proposed lease modification, amendment, or renewal must be presented to us prior to execution by the parties for a compliance review by our real estate counsel we approve. You will be responsible for the reasonable attorneys' fees incurred in connection with the compliance review of the proposed lease modification, amendment, or renewal;
(6) You must execute our then-current form of franchise agreement, which agreement will supersede this Agreement in all respects, and the terms of which may differ from the terms of this Agreement, including a different Royalty Fee and rate of Fund Contribution;
(7) You must pay us a renewal fee of $7,500, plus all a
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the franchise agreement outlines specific conditions a franchisee must meet to renew their franchise. These conditions cover several key areas.
First, the franchisee must provide written notice of their intent to renew within a specific timeframe: no less than six months and no more than nine months before the current term expires. Second, the restaurant's premises, both interior and exterior, along with all assets, must comply with Cicis' system standards and reflect the brand's current image. This likely involves renovations or updates to meet current brand specifications, potentially incurring significant costs for the franchisee.
Third, the franchisee and their affiliates must be in good standing, meaning they cannot be in default of any agreements with Cicis or its affiliates and must have substantially complied with all agreement terms. Fourth, all monetary obligations to Cicis and its affiliates must be satisfied. Fifth, the franchisee must provide evidence that they have the right to remain in possession of the restaurant premises for the renewal term, which may involve lease renewals or securing a new site, subject to Cicis' approval and associated legal fees for compliance review.
Finally, the franchisee must execute Cicis' then-current franchise agreement, which may have different terms than the original, including potentially different royalty fees and fund contribution rates. A renewal fee of $7,500 is required, along with reimbursement for Cicis' out-of-pocket costs for the renewal process, such as legal and accounting fees. The franchisee and their owners must also execute a general release of claims against Cicis and its affiliates, and comply with then-current qualification and training requirements. These stipulations ensure that Cicis maintains brand standards and legal protection while potentially adjusting financial terms upon renewal.