How does Cicis determine the size of the Protected Area?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
rea 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 size of the Protected Area is determined by 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.
For a prospective Cicis franchisee, this means that the Protected Area is not a fixed size but is tailored to the specific location and market conditions. The factors Cicis considers are standard in the franchise industry for determining territory size, aiming to balance market coverage with franchisee success. Understanding these factors can help a franchisee evaluate the potential of a specific location and negotiate the terms of their franchise agreement.
It's important to note that while Cicis grants a Protected Area, it is not an exclusive territory. Franchisees may face competition from other franchisees, outlets that Cicis owns, other channels of distribution, or competitive brands that Cicis controls. Additionally, other restaurants, food aggregators, and third-party delivery service providers may deliver to customers located within the franchisee's Protected Area, and vice versa. Cicis and its affiliates also retain rights within and outside the Protected Area that are not expressly and exclusively granted to the franchisee, including the right to establish and operate Cicis Restaurants outside the Protected Area and to offer and sell products and services through other channels.
Furthermore, Cicis reserves the right to operate in "Special Venues" within the Development Area, which include locations such as master concessionaires, larger venues or facilities (like colleges, airports, and theme parks), and alternative distribution channels. Upon expiration or termination of the Area Development Agreement, Cicis and its affiliates are entitled to develop and operate Restaurants within the former Development Area, except within the Protected Area granted to the franchisee under any effective Franchise Agreement. These conditions highlight the importance of carefully reviewing the terms of the Franchise Agreement and understanding the potential for competition and the limitations of the Protected Area.