What is the definition of the 'Protected Area' in the Cicis Franchise Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
channels of distribution or competitive brands that we control.
Franchise Agreement
The Franchise Agreement gives you the right to operate your Cicis Restaurant at a single location that you select and we accept. You must select your site from within a geographic area that we call your Designated Area and that is described in the Franchise Agreement. As long as you are in compliance with the Franchise Agreement, we will not, during the term of your Franchise Agreement, operate or grant others the right to operate any other Restaurant within a specified geographic area described in the Franchise Agreement (the "Protected Area"). We determine the size of the Protected Area based on various market and economic factors, such as an evaluation of market demographics, the market penetration of similar businesses, the availability of appropriate sites, and the growth trends in the market. The Protected Area generally consists of a portion of a city, county or designated market area.
The Franchise Agreement does not permit you to relocate your Cicis Restaurant. If, at any time during the term of the Franchise Agreement, you request us to consider a relocation, we will do so, but we will not be required to apply any particular standards or guidelines to our consideration. Our decision on whether to grant your request will be made in our sole discretion.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Protected Area in the Franchise Agreement is a specified geographic area where Cicis will not operate or grant others the right to operate another Cicis Restaurant during the term of the Franchise Agreement, provided the franchisee remains in compliance with the agreement. The size of the Protected Area is determined by Cicis based on market and economic factors, including market demographics, the market penetration of similar businesses, the availability of appropriate sites, and market growth trends. The Protected Area typically consists of a portion of a city, county, or designated market area.
While Cicis grants a Protected Area, it's important to note that this exclusivity has limitations. Other restaurants, food aggregators, and third-party delivery services can deliver to customers within the franchisee's Protected Area, and vice versa. Furthermore, the franchisee is restricted from selling Cicis products or services through alternate distribution channels such as the Internet, catalogs, supermarkets, convenience stores, or grocery stores.
Cicis and its affiliates retain rights within and outside the Protected Area that are not expressly granted to the franchisee. This includes the right to establish Cicis Restaurants outside the Protected Area, operate restaurants under other brands, establish Cicis To Go Restaurants anywhere (including within the Protected Area), and sell similar or dissimilar products through other channels. They can also engage in transactions with other businesses, even within the Protected Area, and potentially convert them to the Cicis brand or allow them to incorporate elements of the Cicis system. A "Reserved Area" is defined as any enclosed area of retail sales establishments in excess of 250,000 square feet, food courts, airports, hospitals, cafeterias, commissaries, schools, hotels, office buildings and stadiums, arenas, ballparks, festivals, fairs, military bases and other mass gathering locations or events.
Prospective franchisees should carefully consider these limitations and the potential for competition from other channels and brands when evaluating the Cicis franchise opportunity. Understanding the scope and limitations of the Protected Area is crucial for assessing the potential market and profitability of a Cicis Restaurant.