Can Cicis designate themselves, an affiliate, or a third party as the exclusive source for any particular item?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We may revoke our approval of any supplier at any time and may designate ourselves, our affiliate, or a third party as the exclusive source for any particular item.
To further facilitate consistency and quality among Cicis Restaurants and our ability to leverage volume purchasing power, we may approve or designate vendors and suppliers for some or all the Operating Assets. We are not approved suppliers of any Operating Asset but as noted in Item 5 above, our affiliate, JMC, is the sole approved supplier of certain items that you will use in the development and operation of your Cicis Restaurant. You will be required to participate in our gift and loyalty card programs that are currently conducted by and through our affiliate, CiCi Services.
We have designated third-party suppliers for the following Operating Assets and you must purchase such goods and services from those suppliers: food and beverage products; the initial restaurant equipment, furniture, fixture, supplies & décor package; smallwares; branded merchandise; the point-of-sale system; digital menu boards; game room card readers; computer system and other technology infrastructure requirements; vehicles for delivery; third-party delivery service providers; construction contractor; marketing materials; and insurance.
We will not be required to consider an alternative to any supplier that we have designated as the sole supplier of a particular product or service.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–28)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis retains the right to designate themselves, their affiliates, or a third party as the exclusive source for any particular item. This means that Cicis franchisees may be required to purchase certain goods or services from a specific, mandated supplier.
Cicis may approve or designate vendors and suppliers for some or all of the Operating Assets to facilitate consistency and quality among Cicis Restaurants and to leverage volume purchasing power. Cicis is not an approved supplier of any Operating Asset, but their affiliate, JMC, is the sole approved supplier of certain items used in the development and operation of a Cicis Restaurant. Franchisees are also required to participate in Cicis' gift and loyalty card programs, which are conducted by their affiliate, CiCi Services.
Cicis has designated third-party suppliers for various Operating Assets, including food and beverage products, initial restaurant equipment, furniture, fixtures, supplies, décor package, smallwares, branded merchandise, the point-of-sale system, digital menu boards, game room card readers, computer system and other technology infrastructure requirements, vehicles for delivery, third-party delivery service providers, construction contractor, marketing materials, and insurance. Franchisees must purchase these goods and services from these designated suppliers. This mandate ensures uniformity and quality control across all Cicis locations, but it also limits the franchisee's ability to negotiate prices or choose alternative suppliers.
Before a franchisee can purchase any Operating Asset from a supplier, Cicis must approve the supplier in writing. Cicis will not consider alternatives to suppliers they have designated as the sole supplier of a particular product or service. If a franchisee wants to use a non-approved supplier, they must submit a written request for approval, and they or the supplier must cover the costs of inspection and testing. Cicis can revoke approval of any supplier at any time.