What is the dependency for exercising the Development Rights for Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the terms and limitations contained herein, we grant you the Development Rights. You accept and agree to exercise the Development Rights in strict accordance with the terms and conditions contained in this Agreement. You acknowledge and agree that, as described further in this Agreement:
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- the Development Rights may only be exercised by the execution by us and you or your Affiliate that we approve of our then-current form of Franchise Agreement which, except as expressly provided in this Agreement, may be materially different than the form of Franchise Agreement we are using to grant Franchises on the Effective Date;
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- the Development Rights may only be exercised with respect to Restaurants to be located in the Development Area identified on Attachment A (the "Development Area");
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- you or your approved Affiliate will develop and open Restaurants, in each case pursuant to the applicable Franchise Agreement but as necessary to satisfy the minimum opening requirements of each of the time periods (each a "Development Period") that comprise the overall development schedule described in Attachment A hereto (the "Development Schedule"); and
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- the Development Rights may be exercised from the Effective Date and, unless this Agreement is sooner terminated as provided herein, continuing through the earlier of (1) the date on which the last Restaurant which is required to be opened in order to satisfy the Development Schedule opens for regular business or (2) the last day of the last Development Period of the Development Schedule (the "Term")
You agree to, at all times, faithfully, honestly and diligently perform your obligations under this Agreement and to fully exploit the Development Rights during the Term and throughout the entire Development Area. Except for having your Affiliates that we approve sign Franchise Agreements, you may not subcontract or delegate any of your rights or obligations under this Agreement to any third parties.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, exercising Development Rights is contingent upon several factors. Cicis grants these rights to individuals or entities that meet their qualifications and are committed to acquiring multiple franchises. This decision is based on the applicant's background, experience, skills, financial condition, and resources, as detailed in their application materials. Cicis relies on this information when granting Development Rights.
The Development Rights can only be exercised through the execution of Cicis's current Franchise Agreement form by both Cicis and the approved franchisee or their affiliate. These rights are specific to restaurants located within the designated Development Area. Franchisees must adhere to a Development Schedule, opening restaurants within specified time periods. The Development Rights are valid from the Effective Date until the earlier of either the date the last required restaurant opens or the final day of the Development Schedule's last period.
Furthermore, franchisees must diligently fulfill their obligations under the Development Agreement and fully utilize the Development Rights throughout the designated area and term. Subcontracting or delegating rights to third parties is prohibited, except for allowing approved affiliates to sign Franchise Agreements. Compliance with the terms of the Development Agreement is essential for maintaining the Development Rights. Failure to obtain prior written consent for any transfer of the agreement or Development Rights constitutes a material breach.