Can Cicis establish and operate restaurants under other trade names 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 the 2025 Cicis Franchise Disclosure Document, Cicis and its affiliates retain the right to establish and operate restaurants under other trade names, service marks, and trademarks at any location, whether within or outside the franchisee's Protected Area. This means that even if a franchisee is granted a Protected Area, Cicis can still operate other restaurant concepts under different brand names within that same area.
This clause has significant implications for prospective Cicis franchisees. While a Protected Area typically offers some level of exclusivity, in this case, it does not prevent Cicis from opening competing restaurant concepts under different names within the franchisee's territory. This could potentially dilute the franchisee's market share and impact their profitability.
Furthermore, Cicis also reserves the right to offer and sell similar or dissimilar products and services anywhere in the world, including within the Protected Area, through any channel or method of distribution other than a full-service Cicis Restaurant. This includes Cicis To Go Restaurants, the Internet, or similar electronic media. Therefore, franchisees should be aware that their Protected Area is limited to full-service Cicis Restaurants and does not restrict Cicis from pursuing other avenues of business within the same geographic region.