Is Cicis an approved supplier of any Operating Asset?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We are not approved suppliers of any Operating Asset but as noted in Item 5 above, our affiliate, JMC, is the sole approved supplier of certain items that you will use in the development and operation of your Cicis Restaurant. You will be required to participate in our gift and loyalty card programs that are currently conducted by and through our affiliate, CiCi Services. We will provide a list of approved and designated suppliers in the Operations Manuals or otherwise in writing.
We have designated third-party suppliers for the following Operating Assets and you must purchase such goods and services from those suppliers: food and beverage products; the initial restaurant equipment, furniture, fixture, supplies & décor package; smallwares; branded merchandise; the point-of-sale system; digital menu boards; game room card readers; computer system and other technology infrastructure requirements; vehicles for delivery; third-party delivery service providers; construction contractor; marketing materials; and insurance.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–28)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis itself is not an approved supplier of any Operating Asset. However, the FDD specifies that Cicis's affiliate, JMC, is the sole approved supplier of certain items franchisees will need to develop and operate their Cicis restaurant. Operating Assets are defined as the types of food and beverage items, condiments, construction and decorative materials, fixtures, equipment, furniture, signs, and other products and services that Cicis has approved for appearance, function, and performance.
The FDD indicates that Cicis designates third-party suppliers for various Operating Assets, including food and beverage products, initial restaurant equipment, furniture, fixtures, supplies, décor packages, small wares, branded merchandise, point-of-sale systems, digital menu boards, game room card readers, computer systems and other technology infrastructure requirements, vehicles for delivery, third-party delivery service providers, construction contractors, marketing materials, and insurance. Franchisees are required to purchase these goods and services from those designated suppliers.
Cicis must approve any supplier in writing before a franchisee can purchase any Operating Asset from them. The approval is based on whether the supplier and its products meet Cicis's specifications and standards for reliability. Cicis will not consider alternatives to suppliers they have designated as the sole supplier of a particular product or service. If a franchisee wants to use a non-approved supplier, they must submit a written request for approval and allow Cicis to inspect the supplier's facilities and test samples, with the franchisee or supplier bearing the costs of inspection and testing. Cicis can revoke approval of any supplier at any time and designate themselves, an affiliate, or a third party as the exclusive source for any item. The FDD does not provide the criteria Cicis uses for approving suppliers to its franchisees.
The FDD also states that the total amount of required purchases from approved suppliers constitutes a significant portion of the franchisee's costs, estimating 90% to 95% of the total cost incurred in establishing the restaurant and 90% to 95% of the total cost incurred in operating the Cicis restaurant. This highlights the importance of understanding the approved supplier network and associated costs for prospective franchisees.