Besides individual franchises, what other rights does Cicis grant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to separate written agreements (each a "Franchise Agreement"), we grant franchises (each a "Franchise") for the right to develop and operate restaurants that are identified by and use "Cicis" and other designated trademarks and service marks (the "Marks"), and that offer pizza and other designated food and related items from a designated facility and using designated service methods (each a "Cicis Restaurant"). There are two types of Cicis Restaurants: (1) dine-in buffet restaurants ("Cicis Buffet Restaurants"), and (2) take-out/delivery only restaurants ("Cicis To Go Restaurants"). We also grant to persons or entities that we believe meet our qualifications, and are willing to commit, the right to acquire multiple Franchises ("Development Rights"). Based on your own investigation and diligence, you have applied to acquire Development Rights and, to support your application, you and, if applicable, your owners have provided us with certain information about your and their backgrounds, experience, skills, financial condition and resources (collectively, the "Application Materials"). In reliance on the Application Materials, among other things, we are willing to grant you the Development Rights on the terms and conditions, and subject to the limitations, described in this Agreement. Cicis Restaurants that you or your Affiliates shall develop pursuant to this Agreement are referred to as the "Restaurants."
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Cicis grants Development Rights to qualified individuals or entities, allowing them to acquire multiple franchises. These Development Rights are granted based on the applicant's background, experience, skills, financial condition, and resources.
Cicis also provides a Development Area, within which, as long as the franchisee is in compliance with the agreement, Cicis will not operate or grant a franchise to anyone else to develop or operate a Cicis restaurant. Nor will Cicis grant Development Rights to anyone else within the Development Area. However, this exclusivity does not extend to "Special Venues" such as locations with master concessionaires, venues within larger facilities like colleges, convention centers, airports, hotels, sports facilities, theme parks, hospitals, transportation facilities, convenience stores or other similar captive market locations, or other distribution channels.
The Development Rights can only be exercised by signing Cicis' then-current Franchise Agreement, which may differ from the agreement in use on the effective date, although the royalty rate will not exceed 5% of Gross Sales for Cicis Buffet Restaurants or 6% of Gross Sales for Cicis To Go Restaurants, and the Initial Franchise Fee will be $30,000 for Cicis Buffet Restaurant or $15,000 for Cicis To Go Restaurants. A development fee is required, calculated as $15,000 times the number of restaurants to be developed, which is nonrefundable and fully earned upon execution of the agreement. This fee is credited towards the Initial Franchise Fee for each restaurant developed.
Cicis also retains rights not expressly granted to the franchisee, including the right to use the System and license it to others worldwide, own and operate other businesses (even competitive ones), engage in transactions with other businesses, solicit customers, advertise, and market/sell products through alternative channels of distribution. The Development Schedule is not a guarantee of sufficient sites or support within the Development Area, as Cicis relies on the franchisee's independent investigation to determine feasibility.