Under what conditions can Cicis enter into a lease for the Restaurant premises if the franchisee does not own it?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon Franchisor's receipt of written notice of Franchisee's breach of the Lease, Franchisor, after written notice to Franchisee and Landlord, may (but shall not be obligated) elect to cure any breach of the Lease.
In the event Franchisor elects to cure or Franchisor notifies Landlord that the
Franchise Agreement has been terminated, then Franchisor, at its sole election, may take one or all of the following actions:
(a) Remove and evict Franchisee from the Premises, after obtaining, Landlord's assignment of Landlord's rights under the Lease for the eviction and removal of the Tenant from the Premises and Landlord will cooperate with Franchisor to pursue such action to a conclusion.
(b) Perform the terms of the Lease on behalf of the Tenant (notwithstanding any removal or eviction of Tenant) for a period not to exceed six months from the first date of any cure by Franchisor for which Franchisor will remain liable, without assuming the Lease; or
(c) At any time within or at the conclusion of such six-month period, assume the Lease for the remainder of the current term, together with the right to exercise any applicable renewal options.
In such event, Landlord and Franchisor will enter into a commercially reasonable agreement to document such assumption.
Franchisor is not a party to the Lease and will have no liability under the Lease unless the Lease is assigned to, and assumed by, Franchisor as herein provided.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Cicis, the franchisor, has the option to assume the lease for a restaurant premises under specific circumstances if the franchisee does not own the property.
Specifically, if a franchisee breaches the lease agreement, Cicis has the right to step in and cure the breach. If Cicis chooses to do so, or if the Franchise Agreement is terminated, Cicis can elect to remove the franchisee from the premises. To do this, Cicis can obtain an assignment of the landlord's rights to evict the franchisee. Alternatively, Cicis can perform the terms of the lease on behalf of the franchisee for up to six months without formally assuming the lease.
Within or at the conclusion of this six-month period, Cicis has the option to assume the lease for the remainder of its term, including any renewal options. If Cicis decides to assume the lease, the landlord and Cicis will enter into a commercially reasonable agreement to document the lease assumption. However, Cicis is not liable under the lease unless it is formally assigned to and assumed by them.