What determines the specific terms of the non-competition covenant signed by the Cicis transferor?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you (and your transferring owner(s)) (and your or their immediate family members) must sign a non-competition covenant in favor of us, commencing on the effective date of the Transfer and consistent with the post-term non-competition obligations contained in the most recent Franchise Agreement that you or your Affiliates have signed with us;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the terms of the non-competition covenant that the transferor (seller) must sign are determined by the post-term non-competition obligations outlined in the most recent Franchise Agreement that the transferor or their affiliates have with Cicis. This covenant becomes effective on the date of the transfer.
In simpler terms, when a Cicis franchisee sells their franchise, they (and their immediate family members) must agree not to compete with Cicis. The specifics of this agreement, such as the length of time and geographic area covered, will match what's stated in the most recent franchise agreement they signed with Cicis.
This ensures that the seller cannot immediately open a competing pizza business nearby and take away customers from the Cicis franchise they just sold. The non-compete protects Cicis's interests by preventing former franchisees from using their knowledge of the Cicis system to directly compete with the brand after selling their franchise.