Where in the Cicis Area Development Agreement are territorial development and sales quotas addressed?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Area Development Agreement, you will acquire franchises to develop, open and operate multiple Restaurants within a defined geographic area known as the "Development Area." We determine the size of the Development Area based on various market and economic factors, such as an evaluation of market demographics, the market penetration of similar businesses, the availability of appropriate sites, and the growth trends in the market. The size of the Development Area will depend on factors such as the numbers of Cicis Restaurants you undertake to open, demographics, and the existence of other Cicis Restaurants. The Development Area generally consists of a portion of a city, county or designated market area. Your Development Area will be described in the Area Development Agreement before you sign the Area Development Agreement. Under the Area Development Agreement we will, in accordance with our then-current System Standards, approve or reject your proposed locations for new Cicis Restaurants that you undertake to develop, and the Franchise Agreement for such Cicis Restaurants will set forth their Protected Area, if any, which we determine based on factors described above in this Item 12.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–31)
What This Means (2025 FDD)
Based on the 2025 Cicis Franchise Disclosure Document, Item 12 discusses the territory granted under the Area Development Agreement. It states that the franchisee will acquire franchises to develop, open, and operate multiple Restaurants within a defined geographic area known as the "Development Area." The size of the Development Area is determined by Cicis based on market and economic factors, including market demographics, the market penetration of similar businesses, the availability of appropriate sites, and growth trends. The Development Area's size depends on the number of Cicis Restaurants the franchisee undertakes to open, demographics, and the existence of other Cicis Restaurants. The Area Development Agreement will describe the Development Area before the franchisee signs the agreement.
Cicis will approve or reject proposed locations for new Cicis Restaurants that the franchisee undertakes to develop, according to then-current System Standards. The Franchise Agreement for such Cicis Restaurants will set forth their Protected Area, if any, which Cicis determines based on the factors described in Item 12.
The excerpts from the 2025 FDD do not explicitly mention where sales quotas are addressed within the Cicis Area Development Agreement. A prospective franchisee should carefully review the Area Development Agreement, paying close attention to sections that outline the franchisee's obligations regarding development and operation of Cicis Restaurants, and should seek clarification from Cicis regarding any sales quotas or performance metrics that may be applicable.