Under what circumstances is Cicis' right of first refusal NOT triggered?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
The right of first refusal process will not be triggered by a proposed Transfer that would not be allowed under Sections 5.B and 5.C above.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, the franchisor's right of first refusal is not triggered by a proposed transfer that would not be allowed under Sections 5.B and 5.C of the agreement. These sections likely outline specific conditions or restrictions on transfers that, if violated, would render the transfer invalid and thus not subject to Cicis' right of first refusal.
This means that a franchisee cannot bypass Cicis' right of first refusal by structuring a transfer in a way that violates other pre-existing transfer restrictions. Cicis maintains its oversight on who becomes a franchisee and ensures compliance with the franchise agreement's transfer provisions.
For a prospective franchisee, this highlights the importance of understanding all the conditions and limitations on transfers outlined in the franchise agreement. Attempting a transfer that violates these conditions will not only be a breach of contract but also will not prevent Cicis from exercising its right to first refusal if the transfer is deemed unacceptable for other reasons. It is essential to consult with a franchise attorney to fully understand these provisions before considering any transfer of ownership or interest in the franchise.