factual

Under what condition can Cicis request updated financial information from the Guarantor?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

Each Guarantor consents and agrees that: (1) Guarantor's direct and immediate liability under this Guaranty will be joint and several, both with Franchisee and among other guarantors; (2) Guarantor will render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so; (3) this liability will not be contingent or conditioned upon our pursuit of any remedies against Franchisee or any other person; (4) this liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence which we may from time to time grant to Franchisee or to any other person, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims, none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the term of the Agreement; and (5) at our request, each Guarantor shall present updated financial information to us as reasonably necessary to demonstrate such Guarantor's ability to satisfy the financial obligations of Franchisee under the Agreement.

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

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, Cicis can request updated financial information from the Guarantor under specific circumstances. Cicis can request that each Guarantor present updated financial information as reasonably necessary to demonstrate their ability to satisfy the financial obligations of the franchisee under the franchise agreement.

This means that if Cicis has concerns about the franchisee's financial stability and ability to meet their obligations, they can ask the Guarantor to provide updated financial information. This information would help Cicis assess whether the Guarantor has the financial capacity to cover the franchisee's obligations if the franchisee defaults.

This condition protects Cicis by ensuring that the Guarantor remains capable of fulfilling their guarantee throughout the term of the agreement. For a prospective franchisee, this highlights the importance of having a financially stable Guarantor who is prepared to provide financial information to Cicis upon request.

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.