What agreement must be signed to acquire Development Rights for multiple Cicis franchises?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We also offer to certain qualified entities the right and obligation to acquire multiple franchises for the development and opening of Cicis Restaurants (the "Development Rights") within an agreed upon geographic territory (the "Development Area") and according to an agreed upon schedule (the "Development Schedule"). To acquire the Development Rights, you must sign our form of area development agreement and related agreements, the current forms of which are attached to this Disclosure Document as Exhibit C (the "Area Development Agreement"). You and we will agree on both the Development Area and the Development Schedule before signing, and each will be identified in, the Area Development Agreement. Our typical Area Development Agreement requires development of 2 or 3 Cicis Restaurants, with the final agreed upon number being reflected in the Area Development Agreement you sign. You will sign the Franchise Agreement for the 1st Cicis Restaurant when you sign the Area Development Agreement. For each subsequent Cicis Restaurant you commit to develop, you must sign our then-current form of
Franchise Agreement, which may be materially different than the form we were using when you signed the Area Development Agreement.
Your direct and indirect owners will be required to sign an agreement (the current form of which is attached as Attachment B to the Franchise Agreement and the Area Development Agreement) pursuant to which they each personally assume and guarantee your obligations under the Franchise Agreement and the Area Development Agreement (each a "Guaranty"). If the spouses of your owners are not themselves owners of you, we will require them to sign the Guaranty solely to acknowledge that you are signing it to bind yourself and any marital property. A non-owner spouse is not otherwise obligated under the Guaranty.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 6–8)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, to acquire Development Rights for multiple Cicis franchises, a prospective franchisee must sign the Area Development Agreement. This agreement, along with related agreements, is attached to the Disclosure Document as Exhibit C. The Area Development Agreement outlines the geographic territory, known as the Development Area, and the schedule for opening restaurants, known as the Development Schedule, both of which are agreed upon by Cicis and the franchisee before signing.
Typically, the Area Development Agreement requires the development of 2 or 3 Cicis restaurants, with the exact number specified in the agreement. When signing the Area Development Agreement, the franchisee also signs the Franchise Agreement for the first Cicis restaurant to be developed. For each subsequent restaurant under the development agreement, the franchisee must sign Cicis's current form of Franchise Agreement, which may differ from the initial agreement.
Furthermore, all direct and indirect owners of the franchisee entity are required to sign a Guaranty, which is attached as Attachment B to both the Franchise Agreement and the Area Development Agreement. This Guaranty ensures that the owners personally assume and guarantee the franchisee's obligations under both agreements. Even non-owner spouses of the owners must sign the Guaranty to acknowledge the binding of marital property, although they are not otherwise obligated under it.
In summary, securing Development Rights with Cicis involves a comprehensive set of agreements designed to ensure commitment and compliance with the development schedule and operational standards. Prospective franchisees should carefully review all exhibits and attachments to fully understand their obligations and the potential changes in the Franchise Agreement for subsequent locations.