Must a transferee of a Cicis franchise upgrade the restaurant to current standards?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or other Agreement | Summary | |
|---|---|---|---|
| j. | Assignment of contract by franchisor | Franchise Agreement - Section 13.A. Area Development Agreement - Section 5.A. | We may transfer our rights without restriction. We may transfer our rights without restriction. |
| k. | "Transfer" by franchisee – defined | Franchise Agreement - Sections 13.B. Area Development Agreement - Sections 5.B. | Includes transfer, assignment, sale, conveyance, gift, pledge, mortgage, or other forms of disposal of the rights under the Franchise Agreement or ownership interest in you, and/or the transfer, surrender, or loss of the possession, control, or management of your Restaurant. Includes transfer, assignment, sale, conveyance, gift, pledge, mortgage, or other forms of disposal of the rights under the Area Development Agreement or ownership interest in you, and/or the transfer, surrender, or loss of the possession, control, or management of any Restaurant developed pursuant to the Area Development Agreement. |
| l. | Franchisor approval of transfer by | Franchise Agreement - Section 13.B.(1) | We have the right to approve all transfers by you or your owners but will not unreasonably withhold or delay approval. |
| franchisee | Area Development Agreement Section 5.C | You cannot assign or transfer without first obtaining our written consent. | |
| m. | Conditions for franchisor approval of transfer | Franchise Agreement - Section 13.B. | You must (i) pay all amounts due our affiliates, us or third-party vendors; (ii) not be in default; (iii) execute a general release; (iv) remain liable for pre-transfer obligations; (v) pay or cause us to be paid a transfer fee; (vi) comply and cause your other owners and their family members to comply with the post termination non-compete covenants; and (vii) provide us all information and documents we reasonably request including copies of all agreements executed in relation to proposed transfer. Transferee must (i) meet our criteria; (ii) upgrade the Restaurant to then-current standards; (iii) execute a current Franchise Agreement and other agreements; and (iv) complete our then-current training program. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 45–53)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a transferee of a Cicis franchise must upgrade the restaurant to the then-current standards as a condition for the transfer to be approved. This requirement ensures that all Cicis restaurants maintain a consistent brand image and meet the franchisor's current operational and aesthetic expectations.
In practical terms, this means that someone buying an existing Cicis franchise will likely need to invest additional capital to bring the restaurant up to date. The extent of the required upgrades can vary significantly depending on how recently the restaurant was last renovated and how much Cicis's standards have evolved since then. These upgrades could involve new equipment, updated décor, changes to the layout, or implementation of new technologies.
This requirement protects the Cicis brand by ensuring uniformity and quality across all locations. However, it also presents a potential financial burden for the transferee, who must factor in the cost of these upgrades in addition to the purchase price of the franchise and the transfer fee. Prospective franchisees should carefully evaluate the potential upgrade costs and negotiate these terms with the seller and Cicis before finalizing the transfer agreement. It would be prudent to obtain a detailed estimate of the upgrade expenses from Cicis to make an informed decision.