Is a food court considered a Reserved Area for Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ntinue to operate under another name and incorporate one or more elements of the System. A "Reserved Area" is any enclosed area of retail sales establishments in excess of 250,000 square feet, food courts, airports, hospitals, cafeterias, commissaries, schools, hotels, office buildings and stadiums, arenas, ballparks, festivals, fairs, military bases and other mass gathering locations or events. Without limiting the foregoing, we and our affiliates may, among other things, offer and sell, and authorize others to offer and sell: (a) collateral products, such as pre-packaged food products, t-shirts and other Cicis memorabilia, under the Marks at or from any location or through any channel of distribution; (b) food and beverage services under the Marks at or through any permanent, temporary or seasonal food service facility or through any channel of distribution except a fullservice Cicis Restaurant located within the Protected Area, which facilities may provide in whole or in part the products and services offered by a Cicis Restaurant; and (c) any products or services (including any food or beverage services) under any other names and marks at any location or through any channel of distribution.
Development Agreement
Under the Area Development Agreement, you will acquire franchises to develop, open and operate multiple Restaurants within a defined geographic area known as the "Development Area." We determine the size of the Development 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 size of the Development Area will depend on factors such as the numbers of Cicis Restaurants you undertake to open, demographics, and the existence of other Cicis Restaurants. The Development Area generally consists of a portion of a city, county or designated market area. Your Development Area will be described in the Area Development Agreement before you sign the Area Development Agreement.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a food court is considered a Reserved Area. Cicis retains the right to establish and operate Cicis Restaurants, identified by the Marks, in any Reserved Area whether within or outside a franchisee's Protected Area. This means that even if a franchisee has a Protected Area, Cicis can still open or authorize another Cicis restaurant in a food court within that area.
This is significant for prospective franchisees because it limits the exclusivity of their territory. While a franchisee may have a Protected Area where Cicis will not typically open another full-service restaurant, this protection does not extend to Reserved Areas like food courts. This could lead to direct competition within the franchisee's territory, potentially impacting their sales and profitability.
It is important for potential Cicis franchisees to understand the implications of Reserved Areas and how they might affect their business. Franchisees should carefully consider the presence of food courts and other Reserved Areas within or near their Designated Area when evaluating the potential of a Cicis franchise location. Understanding these exceptions to territorial protection is crucial for making an informed investment decision.