factual

What is the definition of the 'Protected Area' for a Cicis restaurant?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (3) We agree that, except as provided in this Agreement and subject to your full compliance with this Agreement and any other agreement between you or your affiliates and us or our affiliates, we and our affiliates will not, during the Term, establish, or authorize any Person other than you to establish, a Cicis Restaurant identified by the Marks within the area identified on Attachment A or Attachment A-1, as applicable (the "Protected Area").

Source: Item 22 — CONTRACTS (FDD pages 64–65)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, the Protected Area for a Cicis restaurant is defined in Attachment A or A-1 of the franchise agreement. Cicis agrees that, except as provided in the agreement and subject to the franchisee's full compliance with all agreements, Cicis will not establish or authorize anyone else to establish a Cicis Restaurant identified by the Marks within the area identified on Attachment A or A-1.

However, the franchise agreement does not grant exclusivity within the Designated Area. The agreement specifies that the Protected Area will be indicated on Attachment A-1, along with whether the restaurant will operate as a Cicis Buffet Restaurant or a Cicis To Go Restaurant. The franchisee must sign and return Attachment A-1 within five days of receiving it; failure to do so may result in Cicis revoking acceptance of the proposed location. If the franchisee and Cicis cannot agree on the location, restaurant type, and Protected Area, the franchisee must propose a different location within the Designated Area.

Cicis retains significant rights even within or near the Protected Area. They can establish Cicis Restaurants outside the Protected Area, even adjacent to it, and can establish Cicis Restaurants in any Reserved Area, whether inside or outside the Protected Area. Reserved Areas include large retail spaces exceeding 250,000 square feet, food courts, airports, hospitals, cafeterias, schools, hotels, office buildings, stadiums, arenas, ballparks, festivals, fairs, military bases, and other mass gathering locations. Cicis also reserves the right to operate restaurants under other trade names and to operate Cicis To Go Restaurants anywhere, including within the Protected Area. They can sell similar or dissimilar products and services through other channels, such as Cicis To Go Restaurants or the Internet, and can engage in transactions with other businesses, even within the Protected Area, potentially converting them to the Cicis brand or incorporating elements of the Cicis system.

This means that while a franchisee is granted a Protected Area, Cicis retains considerable freedom to operate and authorize other businesses, including other Cicis-branded concepts and alternative brands, in the vicinity. A prospective franchisee should carefully review Attachment A or A-1 to fully understand the specific geographic boundaries of their Protected Area and should also consider the potential impact of Cicis's retained rights on their restaurant's market.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.