Can Cicis acquire businesses located in my Protected Area?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have and retain all rights within and outside the Protected Area that are not expressly and exclusively granted to you under the Franchise Agreement, without any obligation to compensate you and without regard to whether it competes with your Cicis Restaurant, including the right to do and to authorize others to do the following: (i) establish and operate Cicis Restaurants identified by the Marks at any location outside the Protected Area, including locations that are adjacent or proximate to the Protected Area and in any Reserved Area (defined below) whether within or outside the Protected Area, (ii) establish and operate restaurants under other trade names, service marks, and trademarks at any location within or outside of the Protected Area, (iii) establish and operate Cicis To Go Restaurants anywhere in world, including within the Protected Area, (iv) offer and sell, anywhere in the world (including within the Protected Area) any similar or dissimilar products and services, whether identified by the Marks or by other trademarks, trade names or service marks, through any channel or by any method of distribution other than a full-service Cicis Restaurant (including by or through a Cicis To Go Restaurant, the Internet or similar electronic, virtual, or digital medium), on any terms and conditions we deem appropriate, and (v) acquire, be acquired by, merge with, affiliate with or engage in any transaction with other businesses (whether competitive or not) located anywhere and, even if such businesses are located in the Protected Area, (x) convert the other businesses to the Cici's brand and allow them to operate as part of the System, and/or (y) permit the other businesses to continue to operate under another name and incorporate one or more elements of the System.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis and its affiliates retain the right to acquire other businesses, even those located within a franchisee's Protected Area. This means that Cicis could potentially acquire a competing business within your Protected Area.
Cicis has the right to convert these acquired businesses to the Cicis brand, allow them to operate as part of the Cicis system, or permit them to continue operating under a different name while incorporating elements of the Cicis system. This could introduce competition within your Protected Area, either directly under the Cicis brand or indirectly through a business affiliated with Cicis.
This clause is important for prospective franchisees to consider, as it highlights that the Protected Area is not a guarantee against all forms of competition. While Cicis agrees not to operate or franchise another Cicis Restaurant within the Protected Area, they retain the right to acquire existing businesses and integrate them into their system, potentially altering the competitive landscape within your territory. Franchisees should carefully evaluate the potential impact of such acquisitions on their business before investing in a Cicis franchise.