Are Cicis franchise owners allowed to interfere with the franchisor's relationships with suppliers?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of the Franchise Agreement, neither your direct and indirect owners and Operator (and members of their immediate family) shall (i) divert, or attempt to divert, any business or customer of your Cicis Restaurant to any competitor, by direct or indirect inducement or otherwise; (ii) except with respect to other Restaurants operated under valid Franchise Agreements with us, own, maintain, operate, engage in, be employed by, or have any financial or beneficial interest in, advise, assist, aid, make loans to, act as landlord to, or otherwise support, anywhere in the world, any Competing Business (defined below); or (iii) 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.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 43–44)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from interfering with the franchisor's relationships with its suppliers. Specifically, the franchise agreement states that neither the franchisee's direct or indirect owners nor the operator (or their immediate family members) can interfere with Cicis's supplier relationships. This restriction is in place to protect the goodwill associated with the Cicis brand and system.
This provision ensures that Cicis maintains consistent supply chains and quality control across all franchise locations. By preventing franchisees from interfering with supplier relationships, Cicis aims to standardize products and services, which helps to maintain brand reputation and customer expectations. This also allows Cicis to negotiate better terms with suppliers, potentially benefiting all franchisees through cost savings and consistent product availability.
For a prospective Cicis franchisee, this means they must adhere to the franchisor's established supply chain and cannot independently source products or negotiate with suppliers. Violating this provision could lead to a breach of the franchise agreement, potentially resulting in termination of the franchise. Therefore, franchisees must rely on the suppliers approved by Cicis and follow the franchisor's guidelines for procurement and supply chain management.