What is the definition of 'Operator' in the context of a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
You must identify 1 natural person with at least a 25% ownership interest and 25% voting power in you and who will have the authority of a chief executive officer (the "Managing Owner"). In addition to exercising general supervisory responsibility for your activities under this Agreement, the Managing Owner shall directly oversee your Cicis Restaurant's operations, unless you designate another natural person whom we approve to serve as your "Operator". Your Operator must successfully complete our initial training program and all other mandatory trainings that we offer.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 43–44)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the 'Operator' is a designated natural person approved by Cicis who directly oversees the Cicis restaurant's operations. While a Managing Owner, who must have at least a 25% ownership interest and 25% voting power, typically oversees the restaurant, the franchisee can designate another person as the Operator, subject to Cicis's approval.
This Operator must successfully complete Cicis's initial training program and any other mandatory training programs offered by the company. This requirement ensures that the individual in charge of day-to-day operations is well-versed in Cicis's standards and procedures.
The distinction between a Managing Owner and an Operator allows for flexibility in the franchise's management structure. A franchisee who may not be involved in the daily operations can appoint a qualified individual to fulfill this role, provided that Cicis approves the designated Operator. This structure is common in franchising, where the financial investor is not always the hands-on manager.