After the Cicis franchise agreement terminates, what is the franchisee prohibited from doing that would dilute Cicis' rights to its Marks?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the expiration or termination of this Agreement, all rights granted to you hereunder will immediately terminate, and:
- A.
Cease Operations.
You must immediately cease to operate your Restaurant under this Agreement, and you must not thereafter, directly or indirectly, represent to the public or hold yourself out as our present or former franchisee.
- B.
Cease Use of the Marks and Confidential Information.
You must immediately and permanently cease to use, in any manner whatsoever, and return to us (or, at our direction, destroy) any Confidential Information and cease to use the mark "Cicis" and all other Marks.
If you fail to promptly de-identify your Restaurant in accordance with our then-current System Standards, then we will have the right to cure deficiency, and you must reimburse us for all costs we incur in curing such deficiency.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee must immediately cease operating their restaurant and cannot represent themselves as a current or former Cicis franchisee. The franchisee must also immediately and permanently stop using the "Cicis" mark and all other Marks in any way. They are required to return or destroy any Confidential Information.
This means a former Cicis franchisee is prohibited from any activity that could suggest an ongoing affiliation with the Cicis brand or system. This includes using Cicis' trademarks, trade dress, or operational methods. The franchisee must fully de-identify the restaurant to avoid any confusion among customers.
If the franchisee fails to de-identify their restaurant according to Cicis' System Standards, Cicis has the right to take corrective action and charge the franchisee for all associated costs. This ensures that Cicis maintains control over its brand and prevents any potential misuse or damage to its reputation after a franchise agreement ends. This is a fairly standard clause in franchise agreements across various industries.