What factors influence the size of the Cicis Protected Area?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
channels of distribution or competitive brands that we control.
Franchise Agreement
The Franchise Agreement gives you the right to operate your Cicis Restaurant at a single location that you select and we accept. You must select your site from within a geographic area that we call your Designated Area and that is described in the Franchise Agreement. As long as you are in compliance with the Franchise Agreement, we will not, during the term of your Franchise Agreement, operate or grant others the right to operate any other Restaurant within a specified geographic area described in the Franchise Agreement (the "Protected Area"). We determine the size of the Protected 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 Protected Area generally consists of a portion of a city, county or designated market area.
The Franchise Agreement does not permit you to relocate your Cicis Restaurant. If, at any time during the term of the Franchise Agreement, you request us to consider a relocation, we will do so, but we will not be required to apply any particular standards or guidelines to our consideration. Our decision on whether to grant your request will be made in our sole discretion.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the size of the Protected Area is determined by various market and economic factors. These factors include an evaluation of market demographics, the market penetration of similar businesses, the availability of appropriate sites, and the growth trends in the market. The Protected Area generally consists of a portion of a city, county, or designated market area.
For a prospective Cicis franchisee, this means that the Protected Area is not a fixed size but is tailored to the specific location and market conditions. The franchisor, Cicis, assesses the area's population, the presence of competing businesses, the suitability of potential restaurant sites, and the overall economic growth to determine the extent of the Protected Area. This evaluation aims to provide a franchisee with a reasonable opportunity to succeed while balancing the franchisor's need to expand the brand.
It's important to note that while Cicis grants a Protected Area, it is not an exclusive territory. Franchisees may face competition from other franchisees, outlets that Cicis owns, other channels of distribution, or competitive brands that Cicis controls. Furthermore, other restaurants, food aggregators, and third-party delivery service providers may deliver to customers located in a franchisee's Protected Area. A Cicis franchisee cannot sell any products or services sold at their Cicis Restaurant through any alternate distribution channels, including the Internet, catalogue sales, supermarkets, convenience stores, or grocery stores.
Prospective franchisees should carefully consider these factors and conduct their own market research to assess the potential for success within the designated Protected Area. Understanding the local market dynamics and competitive landscape is crucial for making an informed investment decision. Franchisees should also inquire about the specific criteria Cicis uses to evaluate these factors and how they are applied in determining the size and boundaries of the Protected Area.