What constitutes a 'Competing Business' according to the Cicis Franchise Agreement?

According to the 2025 Cicis Franchise Disclosure Document, a 'Competing Business' is defined specifically in relation to pizza sales and related activities. This definition is important because it dictates what types of businesses a franchisee (or their owners/operators) cannot be involved with during the term of the franchise agreement and for a period of time after the agreement expires or is terminated.

Specifically, a business is considered a 'Competing Business' if it meets any of the following criteria: (i) it derives more than 50% of its revenue from selling pizza, including fresh, frozen, or unbaked pizza, using the distribution methods that Cicis authorizes, such as dine-in, carry-out, catering, or delivery; (ii) it functions as a commissary to sell, lease, or supply any such pizza-selling business; or (iii) it grants franchises or licenses for, or provides services to, any of the aforementioned businesses.

This definition is fairly broad and covers not only direct competitors like other pizza restaurants but also businesses that support or enable those competitors. For a prospective Cicis franchisee, this means they need to be very careful about any other business ventures they or their immediate family are involved in, both during the franchise term and for two years afterward, to ensure they do not violate the non-compete provisions of the Franchise Agreement. Failure to comply could result in legal action from Cicis.