When transferring a Cicis franchise, what information and documents must the transferor, proposed transferee, and its owners provide to Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
r of any ownership in you without our prior written consent.
C. CONDITIONS FOR APPROVAL OF TRANSFER.
We may consider, and you will provide or assist us in compiling, any information we deem necessary or appropriate in connection with our assessment of a proposed Transfer. If we elect to approve a proposed Transfer, we may, at our discretion, condition our approval in any manner we deem necessary and appropriate to protect the Cicis brand and our interests in the System and this Agreement, including any of the following (each of which you agree is reasonable):
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- you and any person or entity obligated under this Agreement or Guaranty must be in compliance with your or its obligations;
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- you and the proposed transferee and its owners (if the transferee is a Business Entity) must provide all information and documents we request regarding the Transfer and the proposed transferee and its owners or affiliates;
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- you must provide us with executed versions of any relevant documents to effect the Transfer, and all other information we request about the proposed Transfer;
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- if you or the transferor offer the transferee financing for any part of the purchase price, all of the transferee's obligations under promissory notes, agreements, or security interests reserved in your Development Rights must be subordinate to the transferee's obligation to pay all amounts due to us, our Affiliates, and third party vendors and otherwise agree to comply with this Agreement (or any applicable Franchise Agreement with us);
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- you (and your owner(s)) must sign a general release, in a form satisfactory to us, of any and all claims against us, our Affiliates, and our and their related parties;
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- you (and your transferring owner(s)) (and your or their immediate family members) must sign a non-competition covenant in favor of us, commencing on the effective date of the Transfer and consistent with the post-term non-competition obligations contained in the most recent Franchise Agreement that you or your Affiliates have signed with us;
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Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise, both the transferor, the proposed transferee, and their owners must provide all information and documents that Cicis requests regarding the transfer and the proposed transferee, including their owners or affiliates.
Cicis may request any information it deems necessary or appropriate to assess the proposed transfer. If Cicis approves the transfer, it may condition its approval in any manner it deems necessary to protect the Cicis brand and its interests in the system and the agreement. The transferor must also provide Cicis with executed versions of any relevant documents to effect the transfer, and all other information Cicis requests about the proposed transfer.
Furthermore, the transferor must provide a copy of a bona fide, executed written offer from a responsible and fully disclosed buyer, detailing the payment terms of the proposed sale and the sources and terms of any financing for the proposed purchase price. The offer must include an earnest money deposit equal to five percent or more of the offering price. The proposed transferee and all its direct and indirect owners and their respective spouses must execute and deliver a copy of Cicis's then current form of Guaranty undertaking personally to be bound, jointly and severally, by all provisions of the agreement.