factual

Under what condition will rent abate for a Cicis franchise due to an Interruption Event?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

Notwithstanding anything to the contrary in the Lease or this Rider, if Tenant is interrupted (each, an "Interruption Event") from operating its business in the Leased Premises due to any act or failure to act of Landlord, or its agents, employees or contractors, including but not limited to cessation of utilities or remediation of any environmental condition or any testing in connection with any environmental condition or possible environmental condition, (but excluding a casualty event covered in the Lease) the following will apply: (i) Tenant must give Landlord prompt written notice of any Interruption Event; (ii) Landlord must immediately commence efforts to cure the Interruption Event; (iii) if the Interruption Event remains uncorrected for more than twenty four (24) hours then rent due under the Lease will abate during the existence of the Interruption Event; and (iv) if the Interruption Event remains uncorrected for more than thirty (30) days then Tenant may terminate the Lease upon written notice to Landlord.

Source: Item 22 — CONTRACTS (FDD pages 64–65)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, rent abatement may occur under specific conditions related to an Interruption Event. An Interruption Event is defined as when a Cicis franchisee is prevented from operating their business at the leased premises due to actions or failures of the landlord, their agents, employees, or contractors. This includes, but is not limited to, cessation of utilities, remediation of environmental conditions, or testing related to possible environmental conditions, but excludes casualty events covered in the lease.

For rent to abate, the Cicis franchisee must provide prompt written notice to the landlord regarding the Interruption Event. The landlord is then required to immediately begin efforts to correct the issue. If the Interruption Event remains uncorrected for more than 24 hours, the rent due under the lease will abate for the duration of the Interruption Event.

Furthermore, if the Interruption Event continues for more than 30 days, the Cicis franchisee has the option to terminate the lease by providing written notice to the landlord. This clause provides a degree of protection for the franchisee, ensuring that they are not obligated to pay rent for a location they cannot operate due to the landlord's negligence or failure to maintain the premises.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.