factual

Can Cicis acquire or merge with other businesses located in the Development Area?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

Notwithstanding the foregoing, we reserve for ourselves and our affiliates all rights not expressly granted to you in the Area Development Agreement without any obligation to compensate you, including the right to do and to authorize others to do the following: (i) use and license others to use the System and any elements of the System in any business located or operated anywhere in the world; (ii) own and operate, and license others to own and operate, or otherwise become associated with, any business, anywhere in the world, that uses or is identified by any names, symbols or trademarks, except, as described above, in a restaurant that is located in the Development Area and is identified by the Marks; (iii) acquire, be acquired by, merge, 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 Development Area, (a) convert the other businesses to the Cicis brand, (b) allow such other businesses to operate as part of the System, whether or not converted to the Cicis, and/or (c) permit the other businesses to continue to operate under another name; (iv) solicit customers, advertise, and authorize others to advertise, and promote sales of and from Restaurants, and fill customer orders by providing catering and delivery services anywhere, including within the Development Area; and (v) market and sell, and grant to others the right to market and sell, within and outside of the Development Area, products and services authorized for sale at Restaurants through alternative channels of distribution such as Internet, catalog sales, telemarketing, grocery stores, kiosks, mail order, or through Cicis To Go) using the Marks or other trademarks and commercial symbols.

Source: Item 12 — TERRITORY (FDD pages 38–40)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, Cicis retains the right to acquire, be acquired by, merge, affiliate with, or engage in any transaction with other businesses, regardless of whether those businesses are located within the Development Area. This means that Cicis can engage in such transactions even if the businesses compete with existing Cicis franchises.

Specifically, Cicis has the right to (a) convert other businesses in the Development Area to the Cicis brand and allow them to operate as part of the Cicis system, (b) allow such businesses to operate as part of the Cicis system without converting them, and/or (c) permit these businesses to continue operating under a different name while incorporating elements of the Cicis system.

This clause in the franchise agreement means that a Cicis franchisee's Development Area is not fully protected from potential competition or brand overlap resulting from Cicis's corporate actions. A prospective franchisee should consider this lack of exclusivity and the potential for Cicis to introduce competition within their Development Area through acquisitions or mergers.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.