Can Cicis establish and operate Cicis restaurants outside 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.
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 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 restaurants outside a franchisee's protected area. This means that even though a franchisee is granted a specific protected area, Cicis can still open other restaurants, including those branded as Cicis, outside of that area. These restaurants could even be near or next to the franchisee's protected territory.
Cicis also has the right to establish Cicis restaurants within any Reserved Area, whether inside or outside the franchisee's protected area. A Reserved Area is defined as any enclosed retail space exceeding 250,000 square feet, food courts, airports, hospitals, cafeterias, commissaries, schools, hotels, office buildings, stadiums, arenas, ballparks, festivals, fairs, military bases, and other mass gathering locations. Furthermore, Cicis can operate restaurants under different brand names at any location, regardless of whether it is inside or outside the protected area.
Additionally, Cicis has the right to establish and operate Cicis To Go restaurants anywhere in the world, including within a franchisee's protected area. They can also offer and sell similar or different products and services through various channels other than a full-service Cicis Restaurant, such as Cicis To Go Restaurants or the Internet, anywhere in the world, including within the protected area. Cicis also retains the right to engage in transactions with other businesses, even those located within a franchisee's protected area, and potentially convert them to the Cicis brand or allow them to incorporate elements of the Cicis system while operating under another name.
This lack of exclusivity outside the Protected Area is a common practice in franchising. Prospective franchisees should be aware that while they are granted a Protected Area, Cicis retains significant rights to operate or authorize others to operate similar businesses outside of that area, which could impact the franchisee's potential market and revenue.