Can Cicis establish and operate Cicis To Go Restaurants within the Protected Area?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) 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 this Agreement and the right to do anything that we have not, in this Agreement, expressly agreed not to do, 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, (ii) establish and operate Cicis Restaurants identified by the Marks in any Reserved Area (defined below) whether within or outside the Protected Area, (iii) establish and operate restaurants under other trade names, service marks, and trademarks at any location within or outside of the Protected Area, (iv) establish and operate Cicis To Go Restaurants anywhere in world, including within the Protected Area, (v) 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 media), on any terms and conditions we deem appropriate, and (vi) 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 Cicis 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.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis retains the right to establish and operate Cicis To Go Restaurants anywhere in the world, including within a franchisee's Protected Area. This means that even if a franchisee is granted a Protected Area for a traditional Cicis restaurant, Cicis itself can still open Cicis To Go locations within that same area.
This clause has significant implications for prospective franchisees. While a Protected Area typically offers some level of exclusivity, in the case of Cicis, it does not prevent the franchisor from opening competing Cicis To Go restaurants within that territory. This could potentially impact the franchisee's revenue and market share. The FDD also defines specific locations as "Reserved Areas," such as large retail establishments exceeding 250,000 square feet, food courts, airports, hospitals, and other mass gathering locations. Cicis retains the right to establish restaurants in these Reserved Areas, whether inside or outside the Protected Area.
Furthermore, Cicis reserves the right to operate restaurants under other trade names and trademarks within or outside the Protected Area. They can also offer and sell similar or dissimilar products and services through various channels, including Cicis To Go Restaurants or the Internet, without restriction. This broad reservation of rights underscores that the franchisee's Protected Area is limited to traditional Cicis restaurants and does not extend to other business formats or sales channels that Cicis might pursue.
In summary, while Cicis offers a Protected Area, it is essential for potential franchisees to understand the limitations and exceptions. The franchisor retains considerable freedom to operate competing businesses and alternative service models within the franchisee's territory, which could affect the franchisee's business performance. Therefore, prospective franchisees should carefully consider these factors and evaluate the potential impact on their investment.