Does the Cicis franchise agreement prevent Cicis from owning or licensing others to own businesses identified by similar trademarks outside of the Development Area?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
mpensate you, including the right to do and to authorize others to do the following: (i) use and license others to use the System and any elements of the System in any business located or operated anywhere in the world; (ii) own and operate, and license others to own and operate, or otherwise become associated with, any business, anywhere in the world, that uses or is identified by any names, symbols or trademarks, except, as described above, in a restaurant that is located in the Development Area and is identified by the Marks; (iii) 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, (a) convert the other businesses to the Cicis brand, (b) allow such other businesses to operate as part of the System, whether or not converted to the Cicis, and/or (c) permit the other businesses to continue to operate under another name; (iv) solicit customers, advertise, and authorize others to advertise, and promote sales of and from Restaurants, and fill customer orders by providing catering and delivery services anywhere, including within the Development Area; and (v) market and sell, and grant to others the right to market and sell, within and outside of the Development Area, products and services authorized for sale at Restaurants through alternative channels of distribution such as Internet, catalog sales, telemarketing, grocery stores, kiosks, mail order, or through Cicis To Go) using the Marks or other trademarks and commercial symbols.
Upon expiration or termination of the Area Development Agreement, we and our affiliates will be entitled to develop and operate, and to franchise others to develop and operate, Restaurants within the former Development Area, but not within the Protected Area granted to you under any effective Franchise Agreement between us and you.
You have no right of first refusal or similar rights to acquire additional franchises or establish additional Restaurants. We do not have the right to modify your Protected Area or Development Area during the term of the Franchise Agreement or Development Agreement, as applicable. The exclusivity granted to you is not dependent on achieving a certain sales volume, market penetration, or other contingency other that being in compliance with the applicable Franchise Agreement or Development Agreement.
ITEM 13 TRADEMARKS
The Development Agreement does not give you any rights to operate under the Marks.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Cicis retains significant rights regarding the use of its trademarks and system. Specifically, Cicis is not restricted from using or licensing its system and trademarks anywhere in the world. The only exception to this is that Cicis will not operate or grant a franchise to anyone else to develop or operate a Cicis Restaurant within the Development Area, or grant Development Rights to anyone else within the Development Area, as long as the franchisee is in compliance with the Development Agreement. This applies during the term of the agreement and except with respect to Special Venues.
This means that while a franchisee is granted certain exclusive rights within their Development Area, Cicis maintains the freedom to operate or license businesses with similar trademarks outside of that area. This includes the right to own, operate, or be associated with any business using similar names, symbols, or trademarks anywhere in the world, except for restaurants within the franchisee's Development Area. Cicis also retains the right to engage in transactions with other businesses, even those within the Development Area, and to potentially convert them to the Cicis brand or allow them to operate under another name.
Furthermore, Cicis reserves the right to market and sell products and services through alternative channels of distribution, such as the Internet or direct marketing, both within and outside the Development Area. These activities can utilize Cicis' trademarks and commercial symbols. This reservation of rights extends to all activities not expressly granted to the franchisee in the Development Agreement.
For a prospective Cicis franchisee, this highlights the importance of understanding the scope and limitations of the exclusivity granted within their Development Area. While the franchisee has certain protections within that area, Cicis retains broad rights to operate and license its brand outside of it, potentially including businesses with similar trademarks. Franchisees should carefully consider these factors and conduct thorough due diligence to assess the potential impact on their investment.