What factors does Cicis rely on regarding the franchisee and their owners when entering into the Franchise Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. You and, if applicable, your Owners have requested that we grant you a license to use the System to develop and own a Cicis Restaurant and, in support of your request, have provided us with certain supporting materials (the "Application Materials"). We are willing to grant your request on the terms and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of their respective undertakings and commitments set forth herein, the receipt and sufficiency of which are acknowledged, you and we agree as follows:
AGREEMENT
1. GRANT
Except as may otherwise be provided in this Agreement, the Managing Owner's interest in you will be and will remain free of any pledge, mortgage, hypothecation, lien, charge, encumbrance, voting agreement, proxy, security interest, or purchase right or options.
- (2) In addition to exercising general supervisory responsibility for your activities under this Agreement, the Managing Owner shall directly oversee your Restaurant's operations, unless you designate another natural person whom we approve to serve as your "Operator".
Your initial Operator, if applicable, is identified on Attachment A.
An Operator may, but need not, be an owner and will be responsible for overseeing your Restaurant's operations.
- (3) Your Managing Owner and/or Operator must be approved by us, as we determine in our sole discretion.
Once approved, your Managing Owner and Operator must, during the entire period they serve in such capacities, continue to meet our qualifications and such other standards as may be set forth in the Manuals or otherwise conveyed to you in writing.
Your Managing Owner and the initial Operator must successfully complete our initial training program (the duration and scope of which may vary, depending upon such person's prior restaurant operating experience) within a reasonable period of time after the execution of this Agreement and prior to the Opening Date.
If your Managing Owner or Operator fails, in our sole judgment, to satisfactorily complete such program, then we will give you an opportunity to designate a new Managing Owner and/or Operator, who must be approved by us.
If such newly designated Managing Owner or Operator fails to complete the initial training program to our satisfaction prior to the scheduled Opening Date, we may terminate this Agreement in accordance with Section 15.A.(2)(e).
- (4) You must vest the Managing Owner and any Operator with sufficient decision-making authority to expedite the determinations and decisions that are essential to effective and efficient operation of your Restaurant.
Your Operator (and your Managing Owner if your Managing Owner is your Operator) must devote his or her full-time best efforts to the supervision of your Restaurant's operation and, with our consent, to the supervision of other Cicis Restaurants owned by you or your affiliate(s) and operated pursuant to franchise agreement(s) with us.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis considers several factors related to the franchisee and their owners when entering into a Franchise Agreement. Cicis requires that the franchisee and, if applicable, their owners request a license to use the Cicis System to develop and own a Cicis Restaurant. In support of this request, the franchisee must provide Cicis with supporting materials, referred to as the "Application Materials." Cicis's willingness to grant the franchise is contingent upon the terms and conditions outlined in the Franchise Agreement.
Cicis also emphasizes the importance of a Managing Owner and, if applicable, an Operator. These individuals must be approved by Cicis, and they must continue to meet Cicis's qualifications and standards throughout their tenure. The Managing Owner is expected to exercise general supervisory responsibility over the franchisee's activities and directly oversee the Restaurant's operations, unless another person is designated as the Operator and approved by Cicis. The Operator may or may not be an owner but is responsible for overseeing the Restaurant's operations.
Furthermore, the Managing Owner and the initial Operator are required to successfully complete Cicis's initial training program within a reasonable period after the execution of the Franchise Agreement and before the Opening Date. Failure to complete the training program satisfactorily may result in the franchisee being given the opportunity to designate a new Managing Owner or Operator. If the newly designated personnel also fail to complete the training, Cicis reserves the right to terminate the Franchise Agreement. Cicis also requires that the Managing Owner and any Operator have sufficient decision-making authority to ensure the effective and efficient operation of the Restaurant and that the Operator (or Managing Owner if they are also the Operator) devote their full-time best efforts to supervising the Restaurant's operation.