Can the transfer of the Cicis Area Development Agreement be made separately from the transfer of Franchise Agreements signed pursuant to the Area Development Agreement?

According to Cicis's 2025 Franchise Disclosure Document, the Area Development Agreement cannot be transferred separately from the Franchise Agreements signed under it. Specifically, the transfer of the Area Development Agreement or the associated Development Rights must include the transfer of all Franchise Agreements signed under that Area Development Agreement to the same transferee.

This condition ensures that a new developer taking over an Area Development Agreement also assumes responsibility for the existing Cicis franchise locations operating under that agreement. This prevents a situation where a developer sells off the development rights but retains control of existing franchises, which could create conflicts of interest or operational inconsistencies.

For a prospective Cicis franchisee, this means that if they are considering purchasing an existing Area Development Agreement, they must also be prepared to take over all existing franchise agreements associated with that development agreement. This could involve additional due diligence to assess the performance and compliance of the existing franchise locations. It also ensures that Cicis maintains a consistent relationship with a single developer responsible for both new development and existing operations within a given area.

This requirement is a protective measure for Cicis, ensuring brand consistency and operational control. It also provides clarity for potential transferees, making it clear that acquiring development rights comes with the responsibility of managing existing franchise agreements.