What does the Development Area for a Cicis franchise generally consist of?
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, a Development Area generally consists of a portion of a city, county, or designated market area. 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 plans to open also affects the size of the Development Area. The specific details of the Development Area will be outlined in the Area Development Agreement.
It is important to note that Cicis franchisees do not receive an exclusive territory under the Area Development Agreement. This means that franchisees may face competition from other franchisees, outlets that Cicis owns, other distribution channels, or competitive brands that Cicis controls. However, as long as the franchisee complies with the Area Development Agreement and all Franchise Agreements, Cicis will not develop or operate, or grant anyone else the right to develop and operate, a Restaurant in the Development Area, except for Special Venues.
Special Venues include locations where foodservice is provided by a master concessionaire, locations within larger venues or facilities that draw customers from events in the larger venue (such as colleges, convention centers, airports, hotels, sports facilities, theme parks, hospitals, transportation facilities, and convenience stores), or distribution channels other than a Restaurant through which products and services are or may be sold. Upon expiration or termination of the Area Development Agreement, Cicis has the right to develop and operate, and to franchise others to develop and operate, Restaurants within the former Development Area, except within the Protected Area granted to the franchisee under any effective Franchise Agreement.