How does Cicis determine if a proposed location meets the then-current System Standards?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Area Development Agreement, you will acquire franchises to develop, open and operate multiple Restaurants within a defined geographic area known as the "Development Area." We determine the size of the Development 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 size of the Development Area will depend on factors such as the numbers of Cicis Restaurants you undertake to open, demographics, and the existence of other Cicis Restaurants. The Development Area generally consists of a portion of a city, county or designated market area. Your Development Area will be described in the Area Development Agreement before you sign the Area Development Agreement. Under the Area Development Agreement we will, in accordance with our then-current System Standards, approve or reject your proposed locations for new Cicis Restaurants that you undertake to develop, and the Franchise Agreement for such Cicis Restaurants will set forth their Protected Area, if any, which we determine based on factors described above in this Item 12.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, when a franchisee operating under an Area Development Agreement proposes a location for a new Cicis restaurant, Cicis will either approve or reject the location based on the company's then-current System Standards. The Franchise Agreement for the new restaurant will then define the Protected Area, if any, based on factors described in Item 12 of the FDD. These factors include market and economic conditions.
The FDD specifies that Cicis determines the size of the Protected Area using various market and economic factors. These factors include 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.
It is important to note that franchisees do not receive an exclusive territory under either the Franchise Agreement or the Area Development Agreement. Franchisees may face competition from other franchisees, outlets that Cicis owns, other distribution channels, or competitive brands that Cicis controls. Additionally, Cicis retains rights within and outside the Protected Area that are not expressly granted to the franchisee, including the right to operate Cicis restaurants or other businesses under different trade names.