Are family members of the owners and operators of a Cicis franchise subject to the non-compete agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
know its contents provided they are themselves bound by written obligations of confidentiality.
During the term of the Franchise Agreement, neither your direct and indirect owners and Operator (and members of their immediate family) shall (i) divert, or attempt to divert, any business or customer of your Cicis Restaurant to any competitor, by direct or indirect inducement or otherwise; (ii) except with respect to other Restaurants operated under valid Franchise Agreements with us, own, maintain, operate, engage in, be employed by, or have any financial or beneficial interest in, advise, assist, aid, make loans to, act as landlord to, or otherwise support, anywhere in the world, any Competing Business (defined below); or (iii) interfere with our relationships with any supplier to Cicis Restaurants or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System.
A "Competing Business" is a business that (i) derives more than 50% of its revenue from selling pizza (including fresh, frozen, or unbaked pizza) using the distribution methods (including dinein, carry-out, catering, or delivery) we authorize, (ii) functions as a commissary to sell or lease to or supply any such business, or (iii) grants franchises or licenses for or provides services to any of the foregoing.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 43–44)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the non-compete agreement extends to the immediate family members of the owners and operators of a Cicis franchise. Specifically, the FDD states that during the term of the Franchise Agreement, neither the direct and indirect owners and Operator (and members of their immediate family) can engage in activities that would harm the Cicis business. This includes diverting business to competitors, owning or supporting a competing business, or interfering with Cicis's supplier relationships.
After the termination or expiration of the Franchise Agreement, the non-compete restrictions continue for a period of two years. During this time, the owner, operator, and their immediate family members are prohibited from engaging in a Competing Business within certain geographic areas. These areas include the location of the Cicis Restaurant, the Protected Area, the Development Area (if applicable), or within a 10-mile radius of these locations or any Cicis-branded food service facility.
A "Competing Business" is defined as one that derives more than 50% of its revenue from selling pizza using authorized distribution methods, functions as a commissary to supply such businesses, or grants franchises or licenses for such businesses. This broad definition means that family members are significantly restricted from participating in the pizza industry, even indirectly, for two years after the franchise agreement ends.
This non-compete obligation on family members is a significant restriction that prospective franchisees should carefully consider. It could impact the future career options of the franchisee's family. Franchisees should seek legal counsel to fully understand the implications of this clause and negotiate potential modifications if necessary.