What aspects are covered under the 'Grant of Rights' section of the Cicis franchise agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
vided us with certain supporting materials (the "Application Materials"). We are willing to grant your request on the terms and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of their respective undertakings and commitments set forth herein, the receipt and sufficiency of which are acknowledged, you and we agree as follows:
AGREEMENT
1. GRANT
A. Grant of Rights. In reliance on the Application Materials, we hereby grant you the right and license, and you hereby accept the right and obligation, to use the System (including the Marks) to develop, own and operate a Cicis Restaurant, of the type indicated on Attachment A or Attachment A-1 hereto, during the Term (defined below), at the Location (defined below), and strictly and solely in accordance with this Agreement. Your right and obligation to develop, own and operate a Cicis Restaurant is referred to herein as the "Franchise," and the Cicis Restaurant you develop and own under this Agreement is referred to herein as your "Restaurant."
B. Location; Protected Area and Reserved Rights.
(1) Your Restaurant may be developed and operated only at a location upon which you and we agree, in writing (the "Location"). If you and we have agreed upon the Location when this Agreement is executed, it is identified on Attachment A hereto. If you and we have not yet agreed upon the Location, it is your responsibility to secure our agreement as to your Location within 120 days following the Effective Date. You must, at your expense, find and propose to us a location within the geographic area described on Attachment A ("Designated Area") that you believe meets our then-current site criteria and to submit any information about the location that we request in order to assess your proposal. We may, but will not be required to, conduct an on-site inspection of your proposed location. Should we elect to do so, we will not charge you a fee for conducting the inspection, but you must reimburse all costs and expenses we incur in connection with the
inspection. If you choose to continue to pursue a proposed location and we determine that it is appropriate to conduct another on-site inspection, we reserve the right to charge a fee for, and you will reimburse us the costs and expenses associated with, each such inspection.
- (2) If you and we agree after the Effective Date that your proposed location will be the Location, you and we will identify it on Attachment A-1 hereto and will indicate on that attachment (a) whether your Restaurant will be operated as a Cicis Buffet Restaurant or as a Cicis To Go Restaurant, and (b) your Restaurant's Protected Area (defined below). You must sign and deliver to us Attachment A-1 within five (5) days of its delivery to you, failing which, we may revoke our acceptance of the proposed location. If you and we are unable to agree upon the proposed location, the type of Cicis Restaurant that will be developed, and the Protected Area, you must locate and propose to us a different location within the Designated Area. This Agreement does not grant you any exclusivity with respect to the Designated Area. Our willingness to agree to your proposed Location means only that it meets the criteria that we have established solely for our own purposes, which may be different than your own. Even if we have suggested or assisted you in finding the Location, you may not rely upon our agreement regarding the Location as our representation, promise, warranty, or guarantee that your Restaurant will be profitable or otherwise successful, that the Location satisfies your own requirements, or for any other purpose whatsoever.
- (3) We agree that, except as provided in this Agreement and subject to your full compliance with this Agreement and any other agreement between you or your affiliates and us or our affiliates, we and our affiliates will not, during the Term, establish, or authorize any Person other than you to establish, a Cicis Restaurant identified by the Marks within the area identified on Attachment A or Attachment A-1, as applicable (the "Protected Area").
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the 'Grant of Rights' section of the franchise agreement outlines the specific rights and obligations granted to the franchisee. Cicis grants the franchisee the right and license to use the Cicis System, including the Marks, to develop, own, and operate a Cicis Restaurant. This right is limited to the type of restaurant indicated on Attachment A or A-1, during the term of the agreement, and at the agreed-upon location. This right to operate is referred to as the Franchise, and the restaurant developed under the agreement is the Restaurant.
The agreement specifies that the restaurant can only be operated at a location agreed upon in writing by both Cicis and the franchisee. If the location is agreed upon when the agreement is executed, it is identified on Attachment A. If not, the franchisee is responsible for securing Cicis's agreement on a location within 120 days following the Effective Date, within a Designated Area described on Attachment A. The franchisee must propose a location that meets Cicis's site criteria and provide any requested information. Cicis may conduct an on-site inspection of the proposed location, and while the initial inspection is free, subsequent inspections may incur a fee to cover costs and expenses.
Cicis also retains specific rights, including the right to establish and operate Cicis Restaurants outside the franchisee's Protected Area, operate restaurants under other trade names, and establish Cicis To Go Restaurants anywhere in the world, including within the Protected Area. They can also offer and sell similar or dissimilar products and services through various channels other than a full-service Cicis Restaurant. Furthermore, Cicis reserves the right to engage in transactions with other businesses, even those located in the Protected Area, and potentially convert them to the Cicis brand or incorporate elements of the Cicis System. A Reserved Area is defined as enclosed retail spaces exceeding 250,000 square feet, food courts, airports, and other similar venues.