Under what circumstances related to documentation of Start Up Expenditures does the closing date for the purchase of a Cicis franchise interest extend to 45 days?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) If one or more of the options provided for in this Section 13.D(3) are exercised, closing of the purchase will occur on or before 30 days following the date on which we receive notice of the death or permanent disability, or, in the event additional time is required to document the Start Up Expenditures pursuant to Section 13.D(3)(b)(i) above, within 45 days after such date.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the closing date for the purchase of a Cicis franchise can be extended to 45 days under specific circumstances related to documenting start-up expenditures. This extension is tied to the death or permanent disability of the franchisee and Cicis's subsequent option to purchase the franchise.
Specifically, if Cicis exercises its option to purchase the franchise due to the death or permanent disability of the franchisee, the standard closing period is 30 days from the date Cicis receives notice of the event. However, if additional time is needed to properly document the franchisee's start-up expenditures, the closing date can be extended to 45 days from the date of the notice.
This provision ensures that Cicis has sufficient time to verify and account for all eligible start-up costs when determining the value of the franchise in the event of unforeseen circumstances like the franchisee's death or disability. For a prospective franchisee, this means that meticulous record-keeping of all start-up expenditures is crucial, as it can directly impact the valuation and closing timeline should Cicis need to exercise its purchase option under these conditions.