When will the Development Area for a Cicis franchise be described in the Area Development Agreement?
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, the Development Area, which is the geographic area where a franchisee will develop multiple restaurants, will be described in the Area Development Agreement before the franchisee signs it. Cicis determines the size of the Development Area based on market and economic factors, including market demographics, the market penetration of similar businesses, the availability of appropriate sites, and growth trends. The number of Cicis Restaurants the franchisee commits to opening also affects the size of the Development Area. The Development Area typically consists of a portion of a city, county, or designated market area.
This means that prospective Cicis franchisees will have a clear understanding of their Development Area before committing to the agreement. This allows them to assess the market potential and feasibility of developing multiple restaurants in the specified region. Franchisees should carefully review the description of the Development Area in the Area Development Agreement and conduct their own due diligence to ensure that it aligns with their business goals and investment capabilities.
It is important to note that Cicis retains certain rights within the Development Area, such as the right to develop or franchise Special Venues, which include locations with master concessionaires or those within larger venues like universities, airports, and sports facilities. Franchisees should be aware of these exceptions and how they might impact their development plans. Additionally, the Franchise Agreement for each Cicis Restaurant within the Development Area will define its Protected Area, which is determined based on similar market and economic factors.