After the Cicis franchise agreement expires, for how long does the non-compete agreement last?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) 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; and
- (2) for a continuous uninterrupted period commencing upon the expiration or termination of, or a Transfer (defined below) described in, this Agreement and continuing for two (2) years thereafter, except as we otherwise approve in writing, neither you nor any of your Owners and Operator (and members of their immediate family) will, directly or indirectly, for yourselves, or through, on behalf of, or in conjunction with any other Person, by direct inducement or otherwise, engage in any activities described in Section 9.C(1) above in respect of any Competing Business:
- (a) at the Location; or
- (b) within the Protected Area; or
- (c) if this Agreement is executed pursuant to a development agreement, within the development area described therein; or
- (d) within a 10-mile radius of (i) the Location, (ii) the Protected Area, (iii) the development area, if applicable, or (iv) any Cicis Restaurant or other Cicis-branded food service facility in existence or under construction as of the date of this Agreement or at the commencement of the obligation described in this Section 9.C(2).
If any person restricted by this Section 9C(2) fails to comply with the foregoing obligations as of the date of expiration, termination, or Transfer, the 2-year restricted period for that person will commence on the date the person begins to comply 9C(2), which may be the date a court order is entered enforcing this provision.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, franchisees are subject to a non-compete agreement that lasts for two years after the franchise agreement expires, is terminated, or a transfer occurs. This restriction prevents the franchisee, their owners, and their immediate family members from engaging in any activities related to a Competing Business.
The non-compete restrictions apply to several specific locations. These include the original Cicis restaurant location, the protected area granted to the franchisee, and, if applicable, the development area outlined in any development agreement. Furthermore, the non-compete extends to a 10-mile radius around the restaurant location, the protected area, the development area (if applicable), and any existing or under-construction Cicis restaurant or branded food service facility.
The FDD also specifies that if a person fails to comply with the non-compete obligations upon expiration, termination, or transfer of the agreement, the two-year restricted period will only begin when the person starts to comply with the non-compete terms. This may be the date a court order is issued to enforce the provision, meaning the non-compete period could effectively be extended if a franchisee violates the agreement.