Does the Cicis franchise agreement prevent Cicis from merging with other businesses located in the Development Area?

According to Cicis's 2025 Franchise Disclosure Document, the franchise agreement does not prevent Cicis from merging with other businesses, even those located within a franchisee's Development Area. Cicis retains the right to acquire, be acquired by, merge, affiliate with, or engage in any transaction with other businesses, regardless of whether those businesses compete with Cicis or are located within the Development Area.

Specifically, Cicis has the right to (i) convert other businesses to the Cicis brand, (ii) allow such other businesses to operate as part of the Cicis system, whether or not converted, and/or (iii) permit other businesses to continue operating under another name. This means that Cicis could merge with a competing pizza chain within a franchisee's territory and continue to operate it under a different brand, effectively competing with the franchisee.

This clause gives Cicis significant flexibility in its business operations and growth strategies. However, it also introduces a potential risk for franchisees. The value of a franchisee's exclusive territory could be diminished if Cicis merges with or acquires another business that operates within that territory, even if the acquired business is not converted to a Cicis restaurant. Prospective franchisees should carefully consider this provision and its potential impact on their investment before entering into a franchise agreement with Cicis. It is a fairly common practice for franchisors to maintain such rights to allow for strategic growth and adaptation in the market.