Under the Cicis agreement, can a proceeding be commenced, conducted, or consolidated with any other proceeding?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
WE AND YOU AGREE THAT ANY PROCEEDING WILL BE CONDUCTED ON AN INDIVIDUAL BASIS AND THAT ANY PROCEEDING BETWEEN US AND ANY OF OUR AFFILIATES, OR OUR AND THEIR RESPECTIVE SHAREHOLDERS, OFFICERS, DIRECTORS, AGENTS, AND EMPLOYEES, ON THE ONE HAND, AND YOU OR YOUR OWNERS, GUARANTORS, AFFILIATES, AND EMPLOYEES, ON THE OTHER HAND, MAY NOT BE: (I) CONDUCTED ON A CLASS-WIDE BASIS, (II) COMMENCED, CONDUCTED OR CONSOLIDATED WITH ANY OTHER PROCEEDING, (III) JOINED WITH ANY CLAIM OF AN UNAFFILIATED THIRD-PARTY, OR (IV) BROUGHT ON YOUR BEHALF BY ANY ASSOCIATION OR AGENT.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, any legal proceeding between Cicis and a franchisee must be conducted on an individual basis. Franchisees are prohibited from commencing, conducting, or consolidating any proceeding with another proceeding.
This means a Cicis franchisee cannot participate in a class-action lawsuit against the franchisor. Nor can they combine their legal case with another franchisee's case into a single proceeding. This limitation applies to any legal actions involving Cicis, its affiliates, shareholders, officers, directors, agents, and employees, on one side, and the franchisee, their owners, guarantors, affiliates, and employees, on the other side.
This clause restricts a franchisee's ability to pursue collective legal action against Cicis, which could increase their individual legal costs and potentially weaken their negotiating position. Franchisees should be aware of this limitation and consider its implications before entering into a franchise agreement with Cicis. It is a fairly common practice in franchising to prevent class action lawsuits, as franchisors prefer to handle disputes on a one-on-one basis.