Under what circumstances does Cicis enter into a Franchise Agreement to govern the ownership and operation of a previously closed restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
OGRAM ADDENDUM**
(Franchise Agreement)
REOPEN INCENTIVE PROGRAM ADDENDUM
(Franchise Agreement)
On Smile LLC ("we"), the "Franchisee" identified below ("you"), and your owners who have guaranteed your performance under the Franchise Agreement (collectively, the "Guarantors" and, together with us and you, the "Parties") execute this Reopen Incentive Program Addendum (the "Addendum") to supplement and amend that certain Franchise Agreement identified on Attachment A hereto (as it might have previously been amended, the "Franchise Agreement"). The Effective Date of this Addendum is the date on which we sign below. Capitalized terms used but not defined in this Addendum have the meanings given them in the Franchise Agreement. For valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
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- Restaurant History. The Restaurant identified in the Franchise Agreement was formerly operated as a Cicis Restaurant by you, your affiliate, or a third party unaffiliated with you and was permanently closed or has been temporarily closed for an extensive period. The franchise agreement that previously governed the owner's operation of the Restaurant has been terminated. You and we have entered into the Franchise Agreement to govern your ownership and operation of the previously closed Restaurant from and after the Effective Date.
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- Reopening of the Restaurant. You agree that you will, at your expense, take the actions described on Attachment A hereto to remodel and refresh the Restaurant (the "Refresh Obligations") prior to reopening the Restaurant, and you will complete the Refresh Obligations and reopen the Restaurant for regular business in accordance with the Franchise Agreement by no later than the Reopening D
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, Cicis may enter into a Franchise Agreement to govern the ownership and operation of a previously closed restaurant under specific circumstances. This occurs when the restaurant was formerly operated as a Cicis restaurant by the franchisee, their affiliate, or a third party, and it has been permanently closed or temporarily closed for an extended period. In addition, the franchise agreement that previously governed the restaurant's operation must have been terminated.
In such cases, Cicis and the franchisee enter into a new Franchise Agreement to govern the ownership and operation of the previously closed restaurant, starting from the effective date of the new agreement. As part of the agreement, the franchisee is responsible for remodeling and refreshing the restaurant at their own expense before reopening it, adhering to a reopening deadline outlined in an attachment to the agreement.
Furthermore, if the franchisee and their affiliates remain in good standing with Cicis, the initial franchise fee is reduced to $5,000. However, Cicis reserves the right to revoke this reduction if the franchisee ceases to be in good standing, in which case the franchisee would be required to pay the full initial franchise fee as specified in the Franchise Agreement. Cicis retains sole discretion in determining whether obligations are considered "material" for assessing good standing, and their decision is final. This provides an incentive for franchisees to maintain compliance with the terms of the agreement.