Does the Cicis Franchise Agreement define a 'Designated 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 Franchise Agreement does reference a 'Designated Area'. The document specifies that a franchisee must select their restaurant site from within a geographic area that Cicis calls the 'Designated Area,' which is described in the Franchise Agreement. This area is important because it dictates the general location where the franchisee's Cicis restaurant will operate.
Furthermore, the Franchise Agreement grants a 'Protected Area' to the franchisee, within which Cicis will not operate or grant others the right to operate another Cicis Restaurant, provided the franchisee remains in compliance with the agreement. The size of this Protected Area is determined by Cicis based on market and economic factors, including demographics, market penetration of similar businesses, site availability, and market growth trends. This Protected Area typically consists of a portion of a city, county, or designated market area.
It is important to note that while a franchisee gets a Protected Area, other restaurants, food aggregators, and third-party delivery services may still deliver within that area. Additionally, the franchisee is restricted from selling Cicis products through alternative distribution channels like the Internet, supermarkets, or convenience stores. Cicis retains rights to operate or authorize others to operate outside the Protected Area, including in locations adjacent to it or in Reserved Areas such as large retail establishments, food courts, airports, and other mass gathering locations.