Under the Cicis Area Development Agreement, can a franchisee cure defaults under any other agreement with the franchisor or its affiliates?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| Area Development Agreement – Section 5.C. | Franchise or other Agreement | You must (i) pay all amounts due us and our affiliates and third- party vendors; (ii) not be in default; (iii) provide us all information and documents we reasonably request including copies of all agreements executed in relation to transfer; (iv) execute a general release; (v) remain liable for pre-transfer obligations; (vi) pay or caused to be paid a transfer fee; and (vii) execute a non-compete agreement. Transferee must (i) meet our criteria; (ii) assume post-transfer obligations; and (iii) execute our then-standard Area Development Agreement. | |
| n. Franchisor’s right of first refusal to acquire franchisee’s business | Franchise Agreement – Section 13.C. Area Development Agreement – Section 5.F. | Within 30 days after notice, we have the option to purchase the transferred interest on the same terms and conditions offered by a third party. Within 30 days after notice, we have the option to purchase the transferred interest on the same terms and conditions offered by a third party. | |
| amount equal to your Original Cost (defined in the Franchise | |||
| Agreement), plus | 10%; (ii) 6 | to 12 months following | the |
| Provision | Section in Franchise or other Agreement Area Development Agreement - Section 6. | Summary Under the Area Development Agreement, you have 30 days to cure defaults not listed in (h) below. You may also cure defaults under any other agreement with between you (or your affiliates or guarantors) and us (or our affiliates) within the applicable cure period, if any. |
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 franchisee may have the opportunity to cure defaults under other agreements with Cicis or its affiliates. Specifically, under the Area Development Agreement, a franchisee has 30 days to cure defaults not listed in section (h) of the agreement.
Furthermore, the franchisee may also cure defaults under any other agreement between the franchisee (or their affiliates or guarantors) and Cicis (or its affiliates). This is contingent upon the existence of an applicable cure period within that other agreement.
This provision is favorable for prospective Cicis franchisees as it provides an opportunity to rectify breaches of contract and maintain a good standing relationship with the franchisor, potentially avoiding termination of the Area Development Agreement or other related agreements. Franchisees should carefully review all agreements to understand the specific cure periods and conditions applicable to each.