Is an airport considered a Reserved Area for Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
A "Reserved Area" is any enclosed area of retail sales establishments in excess of 250,000 square feet, food courts, airports, hospitals, cafeterias, commissaries, schools, hotels, office buildings and stadiums, arenas, ballparks, festivals, fairs, military bases and other mass gathering locations or events.
As long as you remain in compliance with the Area Development Agreement and all Franchise Agreements, we will not develop or operate, or grant anyone else a franchise or other rights to develop and operate, a Restaurant, in the Development Area except for Special Venues. A "Special Venue" is any (1) location in which foodservice is or may be provided by a master concessionaire, (2) location which is situated within or as part of a larger venue or facility (other than a mall or shopping center) and, as a result, is likely to draw the predominance of its customers from those persons who are using or attending events in the larger venue or facility (for example, colleges/universities, convention centers, airports, hotels, sports facilities and stadiums, theme parks, hospitals, transportation facilities, convenience stores, and other similar captive market locations), or (3) distribution channel other than a Restaurant through which products and services are or may be sold.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, an airport is considered a Reserved Area. The FDD defines a "Reserved Area" as including airports, among other locations such as large retail establishments, food courts, hospitals, and stadiums. This means that Cicis retains specific rights within these areas, potentially impacting a franchisee's ability to operate in or near such locations.
Specifically, Cicis reserves the right to establish and operate Cicis restaurants, identified by the Marks, in any Reserved Area, whether within or outside a franchisee's Protected Area. This reservation is made without any obligation to compensate the franchisee, even if it competes with their Cicis Restaurant. This clause gives Cicis considerable latitude to operate or authorize others to operate within locations like airports, regardless of any existing franchisee's territory.
Furthermore, under the Area Development Agreement, Cicis retains rights to use the System and its elements in any business located or operated anywhere in the world. This includes the right to own, operate, or license others to operate businesses using Cicis's trademarks, except in a restaurant within the Development Area that is identified by the Marks. This broad reservation of rights, combined with the definition of Reserved Areas, suggests that franchisees may face competition from Cicis or its affiliates in non-traditional locations like airports, which are carved out from the typical protected territory.
In addition to Reserved Areas, Cicis also defines "Special Venues" which include locations within larger facilities such as airports, colleges, convention centers, and hospitals. Cicis retains the right to develop or operate restaurants, or grant others the right to do so, in these Special Venues within a franchisee's Development Area. This further emphasizes that franchisees may not have exclusive rights in these types of locations, and Cicis maintains the flexibility to establish additional outlets in these venues.