Under what conditions does Cicis have the right to assume interim management of a Restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) You or your representative must promptly notify, in writing, us of your or your Managing Owner's death or permanent disability.
At our request, within a reasonable period of time not to exceed seven (7) days from the date of death or permanent disability, the executor, administrator, or other personal representative of the deceased or disabled person will provide for interim management of your Restaurant until such time as a transfer has been effected in accordance with the provisions of this Section 13.D.
Such interim management must be approved by us and must be conducted in accordance with the terms of this Agreement.
We may (but are not obligated to) assume such interim management of your Restaurant; provided that (i) our interim management of your Restaurant will not relieve you of your obligations under this Agreement; (ii) we will not be liable for any debts, losses, costs, or expenses incurred in the operation of your Restaurant during any such period of interim management; (iii) we will have the right to charge a reasonable fee for our management services, plus the direct out-of-pocket costs and expenses incurred in the operation of the Restaurant; and (iv) you will, and hereby do, indemnify and hold us harmless against any and all judgments, fines, losses, liabilities, costs, amounts paid in settlement, and reasonable expenses (including, but not limited to attorneys' fees) incurred in connection with our interim management of your Restaurant, except by reason of our gross negligence or willful misconduct.
Any Transfer upon death or permanent disability will be subject to the same terms and conditions as described in this Section 13 for any inter vivos Transfer.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis may assume interim management of a restaurant under specific circumstances related to the franchisee's or managing owner's death or permanent disability. If the franchisee or their managing owner dies or becomes permanently disabled, the franchisee or their representative must promptly notify Cicis in writing.
Within a reasonable period, not exceeding seven days from the date of death or permanent disability, the executor, administrator, or personal representative is expected to provide interim management for the restaurant. This interim management is subject to Cicis's approval and must align with the franchise agreement terms. However, Cicis has the option, but not the obligation, to assume this interim management role themselves.
If Cicis chooses to assume interim management, the franchisee remains responsible for their obligations under the agreement. Cicis will not be liable for any debts, losses, costs, or expenses incurred during this period. Cicis has the right to charge a reasonable fee for their management services, covering direct out-of-pocket costs. Furthermore, the franchisee must indemnify Cicis against any judgments, fines, losses, liabilities, costs, and expenses, including attorney's fees, related to their interim management, unless these arise from Cicis's gross negligence or willful misconduct.
Any transfer of the franchise due to death or permanent disability will adhere to the same terms and conditions as any other transfer during the franchisee's lifetime.