Under what circumstances related to public health or safety can Cicis terminate a franchise agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) a threat or danger to public health or safety results from the construction, maintenance, or operation of your Restaurant;
The System Standards applicable to Cicis Buffet Restaurants may differ from those applicable to Cicis To Go Restaurants. Our periodic modification of the System Standards, which may accommodate regional or local variations, may obligate you to invest additional capital in your Restaurant and incur higher operating costs. At our discretion, we may require you to make certain modifications to the manner of operation of your Restaurant, including without limitation, modifying the hours of operation, changing the manner in which products or services shall be delivered to customers, limiting or changing the products or services that you shall provide to customers, and creating and displaying temporary signage, all of which may be required on a regional or local basis as necessary to address certain public health concerns. These modifications do not need to be implemented throughout the System, and in certain situations, could only affect your Restaurant, and could include requiring temporary closure. We will determine the scope and duration of such modifications.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Cicis can terminate the franchise agreement if a threat or danger to public health or safety results from the construction, maintenance, or operation of the franchisee's restaurant. This provision gives Cicis a clear path to terminate the agreement if the franchisee's actions pose a risk to the public.
Additionally, Cicis retains the right to modify the System Standards, which may include changes to address public health concerns. These modifications can be specific to a single restaurant and may involve altering operating hours, changing service delivery methods, limiting products or services, or even requiring temporary closure. The franchisor determines the scope and duration of these modifications.
These stipulations in the franchise agreement highlight the importance of franchisees maintaining high standards of safety and hygiene. Failure to do so not only risks immediate termination but also subjects the franchisee to the franchisor's interventions, which could include costly operational changes or temporary closures. Prospective franchisees should understand that Cicis prioritizes public health and safety and has mechanisms in place to enforce these standards, up to and including termination of the franchise agreement.