What must the transferee of a Cicis franchise agree to in a written agreement with Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ffiliates and us or any of our affiliates, and there must not have been any such defaults during the term of any such agreements; - (c) the transferor and its Owners (if applicable) must execute a general release, in form and substance satisfactory to us, of any and all claims, however arising, against us, our affiliates, and the officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, and employees of each from the beginning of time to the date of transfer;
- (d) the transferee must enter into a written agreement, in form and substance satisfactory to us, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the transfer, all obligations, covenants, and agreements contained in this Agreement; and, if the transferee is a legal entity, each of the transferee's owners as we designate must execute such agreement and jointly assume and guarantee the entity's performance of all such obligations, covenants, and agreements;
- (e) the transferee must execute, for a term ending on the expiration date of this Agreement and with such renewal terms as may be provided by this Agreement, our thencurrent standard form of franchise agreement and all other ancillary agreements as we may require, which agreements will supersede this Agreement and its ancillary documents in all respects and the terms of which agreements may differ from the terms of this Agreement, including a higher percentage Royalty Fee and Fund Contribution or expenditure requirement; provided, however, that the transferee will not be required to pay any initial franchise fee; and, if the transferee is legal entity, such of transferee's owners as we may designate must execute such agreement and jointly assume and guarantee the entity's performance of all such obligations, covenants, and agreements;
- (f) the transferee must demonstrate to our satisfaction that it meets the criteria we then consider when reviewing a prospective franchisee's application for a Franchise;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, a transferee—the person or entity buying an existing Cicis franchise—must enter into a written agreement with Cicis that is satisfactory in form and substance to Cicis. This agreement involves several key commitments. The transferee must assume full, unconditional, joint, and several liability for all obligations outlined in the original franchise agreement from the date of the transfer. If the transferee is a legal entity, its designated owners must also execute the agreement, jointly assuming and guaranteeing the entity's performance.
Furthermore, the transferee is typically required to execute Cicis' then-current standard form of franchise agreement, which will supersede the original agreement. The terms of this new agreement may differ from the original, potentially including higher royalty fees and fund contribution requirements. However, the transferee will not be required to pay an initial franchise fee. The transferee must also demonstrate that they meet Cicis' criteria for prospective franchisees.
In addition to these contractual obligations, the transferee is responsible for renovating and upgrading the restaurant to meet current system standards within a timeframe specified by Cicis. The transferee must also ensure that they and any personnel required to complete training programs do so at their own expense, adhering to Cicis' terms and conditions. These stipulations ensure that the new franchisee is fully committed to upholding Cicis' standards and financial obligations, and that the restaurant maintains a consistent brand image and operational quality.