Does Cicis have to compensate the franchisee if they operate or grant a franchise to operate a Cicis restaurant in a Special Venue within the Development Area?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, we reserve for ourselves and our Affiliates all rights not expressly granted to you in this Agreement and the right to do all things that we do not expressly agree in this Agreement not to do. Without limitation and without regard to proximity to your Development Area, and without any obligation to compensate you, we and our Affiliates reserve the right, on such terms and conditions as we deem appropriate, ourselves or through authorized third parties (including our Affiliates), to:
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis is not obligated to compensate a franchisee if they operate or grant a franchise to operate a Cicis restaurant in a Special Venue within the Development Area. Cicis retains specific rights regarding Special Venues, which are defined as locations such as those within master concessionaires, larger venues like colleges, convention centers, airports, hotels, sports facilities, theme parks, hospitals, transportation facilities, convenience stores, and other similar captive market locations. These also include distribution channels other than a Cicis Restaurant.
Cicis reserves all rights not expressly granted to the franchisee in the agreement, allowing them to operate or franchise others in Special Venues without any obligation to compensate the franchisee. This reservation applies regardless of the proximity to the franchisee's Development Area.
This clause means that a Cicis franchisee's exclusive territory has significant limitations. Cicis can establish franchises in locations that might draw customers away from the franchisee's restaurant without providing any financial consideration to the franchisee. Prospective franchisees should carefully consider the potential impact of Special Venues on their investment and revenue projections, as Cicis retains considerable freedom to operate within or near the Development Area in these specific locations.