Under what circumstances should the Representations and Acknowledgment Statement NOT be signed for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ATTACHMENT D TO FRANCHISE AGREEMENT
REPRESENTATIONS AND ACKNOWLEDGMENT STATEMENT
DO NOT SIGN THIS QUESTIONNAIRE IF YOU ARE LOCATED, OR YOUR RESTAURANT WILL BE LOCATED IN: ILLINOIS, INDIANA, MARYLAND, OR VIRGINIA.
The purpose of this Statement is to demonstrate to On Smile LLC ("Franchisor") that the person(s) signing below ("I," "me" or "my"), whether acting individually or on behalf of any legal entity established to acquire the area development and/or franchise rights ("Franchisee"), (a) fully understands that the purchase of a Cicis Buffet Restaurant or Cicis To Go Restaurant franchise is a significant long-term commitment, complete with its associated risks, and (b) is not relying on any statements, representations, promises or assurances that are not specifically set forth in Franchisor's Franchise Disclosure Document and Exhibits (collectively, the "FDD") in deciding to purchase the franchise.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Representations and Acknowledgment Statement should not be signed if the prospective franchisee's location, or the location of their restaurant, is in Illinois, Indiana, Maryland, or Virginia. This instruction is explicitly stated on Attachment D to the Franchise Agreement. The purpose of this statement is to confirm that the franchisee understands the commitment and risks involved in purchasing a Cicis franchise and that their decision is based on the information provided in the Franchise Disclosure Document (FDD).
The reason for excluding franchisees in Illinois, Indiana, Maryland, or Virginia from signing this statement is likely due to franchise laws in those states. These laws often provide specific protections to franchisees, including the right to make claims under state franchise law and to rely on statements made by the franchisor. The statement includes an acknowledgment that the franchisee is not relying on any representations not included in the FDD, which could potentially conflict with these state law protections.
This provision is important for prospective Cicis franchisees because it highlights the legal differences between states regarding franchise rights. If a franchisee is located in one of the listed states, they retain certain legal rights and protections that might be compromised by signing the acknowledgment. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state laws.
It is a common practice for franchise agreements to include clauses that are tailored to comply with specific state laws, especially in states with robust franchise regulations. This ensures that the franchise agreement is enforceable and that franchisees are not unknowingly waiving their legal rights. Cicis's approach of excluding franchisees in certain states from signing the Representations and Acknowledgment Statement reflects this practice.