Following an acquisition in the Development Area, can Cicis permit the acquired business to continue operating under another name besides Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- acquire, be acquired by, merge, 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 Development Area, (i) convert the other businesses to the Cicis brand, (ii) allow such other businesses to operate as part of the System, whether or not converted to the Cicis, and/or (iii) permit the other businesses to continue to operate under another name;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Cicis has the right to acquire other businesses, even those located within a franchisee's Development Area. Following such an acquisition, Cicis has several options regarding the acquired business's operation. Specifically, Cicis can choose to convert the acquired business to a Cicis brand, allow it to operate as part of the Cicis system (whether or not converted), or permit the business to continue operating under its existing name.
This provision provides Cicis with considerable flexibility in managing its brand and market presence. For a Cicis franchisee, this means that Cicis could acquire a competing business within their Development Area and choose not to convert it to a Cicis restaurant. This could potentially lead to continued competition from a business that Cicis now owns, but which still operates under a different brand.
However, this clause also allows Cicis to strategically integrate acquired businesses into its system without necessarily requiring immediate rebranding, which could be beneficial in certain situations. As a prospective franchisee, it would be prudent to discuss with Cicis their strategy for acquisitions within Development Areas and under what circumstances they would choose to maintain the acquired business's original branding.