Does Cicis waiving a claim during a transfer constitute a waiver of future claims against the transferring party?

According to Cicis's 2025 Franchise Disclosure Document, Cicis's consent to a transfer of a franchise does not constitute a waiver of any claims that Cicis may have against the transferring party. Furthermore, it will not be deemed a waiver of Cicis's right to demand exact compliance with any of the terms of the agreement by the transferee. This means that even if Cicis approves a franchise transfer, it retains all rights to pursue existing claims against the seller and to enforce the franchise agreement fully against the buyer.

This provision protects Cicis's interests by ensuring that the transfer of a franchise does not inadvertently release the transferring franchisee from any prior obligations or liabilities. It also clarifies that the new franchisee is fully responsible for adhering to all terms of the franchise agreement, regardless of any previous arrangements or understandings between Cicis and the transferring franchisee.

For a prospective Cicis franchisee, this clause highlights the importance of understanding that selling the franchise does not automatically absolve them of past liabilities. They could still be held responsible for any breaches of the franchise agreement that occurred before the transfer. Similarly, a buyer needs to be aware that Cicis will enforce the agreement's terms strictly, regardless of any leniency that may have been shown to the previous franchisee.