Under what circumstances is this rider being signed for a Cicis Area Development Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS RIDER is made and entered into by and between ON SMILE LLC, a Delaware limited liability company with its principal business address at 13355 Noel Road, Suite 1645, Dallas, TX 75240 ("we," "us," or "our"), and , whose principal business address is ("you" or "your"). 1. BACKGROUND. We and you are parties to that certain Area Development Agreement dated, 20 (the "Area Development Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Area Development Agreement. This Rider supersedes any inconsistent or conflicting provisions of the Area Development Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the Area Development Agreement. This Rider is being signed because (a) you are a resident of the State of Maryland; or (b) the Cicis Buffet Restaurants or Cicis To Go Restaurants that you develop under your Area Development Agreement are or will be operated in the State of Maryland; or (c) the offer to sell is made in the State of Maryland; or (d) the offer to buy is accepted in the State of Maryland.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a rider to the Area Development Agreement is signed under specific circumstances related to the franchisee's location or the transaction's location. For Illinois, the rider is signed if the franchisee is domiciled in Illinois, or if the offer of the franchise is made or accepted in Illinois, and the Cicis restaurants developed under the Area Development Agreement are or will be located in Illinois. For Maryland, the rider is signed because (a) you are a resident of the State of Maryland; or (b) the Cicis Buffet Restaurants or Cicis To Go Restaurants that you develop under your Area Development Agreement are or will be operated in the State of Maryland; or (c) the offer to sell is made in the State of Maryland; or (d) the offer to buy is accepted in the State of Maryland.
These riders are annexed to and form part of the Area Development Agreement, superseding any inconsistent or conflicting provisions within the original agreement. This ensures that the franchise agreement complies with specific state laws, such as the Illinois Franchise Disclosure Act or the Maryland Franchise Registration and Disclosure Law, providing additional protections and rights to the franchisee as required by these state regulations.
For a potential Cicis franchisee, this means that the standard Area Development Agreement is modified by a rider that takes into account the specific legal requirements of the state where they reside or where their restaurants will operate. This rider addresses issues such as waiver of compliance with state franchise laws, limitations of claims, governing law, and other provisions to align with state regulations, offering franchisees additional safeguards and rights as mandated by state laws. Franchisees should carefully review these state-specific riders to understand their rights and obligations under the franchise agreement within the context of their state's laws.