Under what conditions will the continuing obligations of the franchisee and franchisor under the Cicis Franchise Agreement, such as non-disparagement and non-competition, cease to be in effect after the agreement's expiration or termination?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
All of our and your (and your owners') obligations which expressly or by their nature survive this Agreement's expiration or termination will continue in full force and effect subsequent to and notwithstanding its expiration or termination and until they are satisfied in full or by their nature expire, including, without limitation, all obligations relating to non-disparagement, noncompetition, non-interference, confidentiality, and indemnification.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the obligations of both the franchisee and Cicis that survive the expiration or termination of the Franchise Agreement, such as those related to non-disparagement and non-competition, will remain in full effect. These obligations will continue until they are either completely fulfilled or naturally expire.
This means that even after the franchise agreement ends, certain responsibilities and restrictions will still apply to the franchisee. For example, the franchisee must continue to refrain from making negative statements about the Cicis brand and must not engage in competitive activities that could harm the Cicis business. Similarly, Cicis also has continuing obligations that they must adhere to.
For a prospective Cicis franchisee, this highlights the importance of understanding all aspects of the Franchise Agreement, especially those that extend beyond the agreement's term. It is crucial to carefully review the specific clauses related to non-disparagement, non-competition, confidentiality, and indemnification to fully grasp the long-term implications of these obligations. Franchisees should seek legal counsel to clarify the extent and duration of these continuing obligations and how they might impact future business endeavors after the franchise agreement concludes.