Can Cicis establish restaurants under other trade names within my Protected Area?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the Franchise Agreement, without any obligation to compensate you and without regard to whether it competes with your Cicis Restaurant, 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 and in any Reserved Area (defined below) whether within or outside the Protected Area, (ii) establish and operate restaurants under other trade names, service marks, and trademarks at any location within or outside of the Protected Area, (iii) establish and operate Cicis To Go Restaurants anywhere in world, including within the Protected Area, (iv) 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, virtual, or digital medium), on any terms and conditions we deem appropriate, and (v) 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 Cici's 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 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis retains the right to establish and operate restaurants under other trade names, service marks, and trademarks at any location, whether within or outside of a franchisee's Protected Area. This means that even if a franchisee has a Protected Area, Cicis is not restricted from opening other restaurant concepts under different brand names within that same area.
This has significant implications for potential franchisees. While a Protected Area offers some level of territorial exclusivity for Cicis restaurants operating under the Cicis brand, it does not prevent Cicis from competing with its own franchisees through different restaurant brands. This could potentially dilute a franchisee's market share and revenue if Cicis introduces a competing concept within the Protected Area.
Furthermore, Cicis and its affiliates retain all rights within and outside the Protected Area that are not expressly and exclusively granted to the franchisee. This includes the right to offer and sell similar or dissimilar products and services through various channels, such as Cicis To Go restaurants or the Internet, without any obligation to compensate the franchisee. This broad reservation of rights gives Cicis considerable flexibility in how it operates and expands its business, even within a franchisee's territory.
Prospective franchisees should carefully consider this aspect of the franchise agreement and evaluate the potential impact of Cicis operating other restaurant brands within their Protected Area. It would be prudent to discuss Cicis's plans for expansion and potential competition with existing franchisees to gain a better understanding of the risks and opportunities associated with this provision.