Under what circumstances can Cicis terminate the franchise agreement if the franchisee closes the restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
If any such default is not cured within the specified time, or such longer period the Laws may require, we may terminate this Agreement effective immediately on written notice to you.
C. Alternative Remedies. Without limiting any of our rights set forth above, if at any time we have, but have not yet exercised, our right to terminate this Agreement for any reason, we may, in our sole discretion, in addition to other remedies we might have and without waiving any rights with respect to the default, require that you cease operating your Restaurant until the earlier of the default which serves as the basis for our right to terminate is cured or we exercise our right to terminate. You hereby waive all claims against us and our affiliates arising from any suspension provided for in this Section 15.C, and you hereby indemnify us against any claims brought by any third parties arising out of our exercise of our rights under this Section 15.C, in connection with your indemnity obligations set forth in Section 14 above.
16. POST TERMINATION
Upon the expiration or termination of this Agreement, all rights granted to you hereunder will immediately terminate, and:
- A.
Cease Operations.
You must immediately cease to operate your Restaurant under this Agreement, and you must not thereafter, directly or indirectly, represent to the public or hold yourself out as our present or former franchisee.
- B.
Cease Use of the Marks and Confidential Information.
You must immediately and permanently cease to use, in any manner whatsoever, and return to us (or, at our direction, destroy) any Confidential Information and cease to use the mark "Cicis" and all other Marks.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis can terminate the franchise agreement if a franchisee defaults and fails to cure the default within the specified time. Cicis also has the option to require the franchisee to cease operating the restaurant until the default is cured or Cicis exercises its right to terminate the agreement.
Upon termination of the agreement, the franchisee must immediately cease operating the Cicis restaurant and must not represent themselves as a current or former franchisee. The franchisee must also cease using Cicis's marks and confidential information.
Additionally, the Franchisee Lease Rider states that if the franchisee has an obligation to continuously operate its business at the premises, the franchisee may cease operating for up to sixty (60) days, from time to time, to perform repairs, enhancements or renovations, as required by the Franchise Agreement. It does not specify what happens if the franchisee closes the restaurant for longer than 60 days.