What determines the Protected Area, if any, for a Cicis Restaurant under the Franchise Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
channels of distribution or competitive brands that we control.
Franchise Agreement
The Franchise Agreement gives you the right to operate your Cicis Restaurant at a single location that you select and we accept. You must select your site from within a geographic area 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. You have no right of first refusal or similar rights to acquire additional franchises or establish additional Restaurants.
Other Restaurants, food aggregators, and/or third-party delivery service providers may deliver to customers located in your Protected Area and vice-versa. You may not sell any products or services sold at your Cicis Restaurant through any alternate distribution channels, including, the Internet, catalogue sales, supermarkets, convenience stores, or grocery stores.
We and our affiliates have and retain all rights within and outside the Protected Area that are not expressly and exclusively granted to you under the Franchise Agreement, without any obligation to compensate you and without regard to whether it competes with your Cicis Restaurant, including the right to do and to authorize others to do the following: (i) establish and operate Cicis Restaurants identified by the Marks at any location outside the Protected Area, including locations that are adjacent or proximate to the Protected Area and in any Reserved Area (defined below) whether within or outside the Protected Area, (ii) establish and operate restaurants under other trade names, service marks, and trademarks at any location within or outside of the Protected Area, (iii) establish and operate Cicis To Go Restaurants anywhere in world, including within the Protected Area, (iv) offer and sell, anywhere in the world (including within the Protected Area) any similar or dissimilar products and services, whether identified by the Marks or by other trademarks, trade names or service marks, through any channel or by any method of distribution other than a full-service Cicis Restaurant (including by or through a Cicis To Go Restaurant, the Internet or similar electronic, virtual, or digital medium), on any terms and conditions we deem appropriate, and (v) acquire, be acquired by, merge with, affiliate with or engage in any transaction with other businesses (whether competitive or not) located anywhere and, even if such businesses are located in the Protected Area, (x) convert the other businesses to the Cici's brand and allow them to operate as part of the System, and/or (y) permit the other businesses to continue to operate under another name and incorporate one or more elements of the System. A "Reserved Area" is any enclosed area of retail sales establishments in excess of 250,000 square feet, food courts, airports, hospitals, cafeterias, commissaries, schools, hotels, office buildings and stadiums, arenas, ballparks, festivals, fairs, military bases and other mass gathering locations or events.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees may be granted a Protected Area. The size of the Protected Area is determined by Cicis based on market and economic factors. These factors include an evaluation of market demographics, the market penetration of similar businesses, the availability of appropriate sites, and growth trends in the market. The Protected Area typically consists of a portion of a city, county, or designated market area.
While Cicis grants a Protected Area, it is important to note that other restaurants, food aggregators, and third-party delivery service providers may deliver to customers within a franchisee's Protected Area, and vice versa. Additionally, franchisees are not allowed to sell any products or services sold at their Cicis Restaurant through alternate distribution channels, such as the Internet, catalogue sales, supermarkets, convenience stores, or grocery stores.
Cicis and its affiliates retain rights within and outside the Protected Area that are not expressly granted to the franchisee. This includes the right to establish Cicis Restaurants outside the Protected Area, including adjacent locations, operate restaurants under other names, establish Cicis To Go Restaurants anywhere in the world, and offer similar or dissimilar products through other channels. Cicis also reserves the right to engage in transactions with other businesses, even within the Protected Area, and potentially convert them to the Cicis brand or allow them to incorporate elements of the Cicis system.
Furthermore, Cicis and its affiliates can offer and sell collateral products like pre-packaged food, t-shirts, and memorabilia under the Cicis marks from any location or through any distribution channel. They can also offer food and beverage services under the Cicis marks through various facilities, except for a full-service Cicis Restaurant within the Protected Area. These factors highlight that while a Protected Area is granted, Cicis retains significant flexibility in its operations and distribution strategies, which could impact a franchisee's business.