Is a Cicis franchisee prohibited from diverting business from their restaurant to a competitor during the term of the agreement?

You acknowledge that you, your Owners, your employees, and your other representatives will receive valuable training and access to Confidential Information during the Term which are beyond your and their present skills and experience, including information regarding our operational, sales, and promotional and marketing methods and techniques and those of the System. You acknowledge that (i) such specialized training and Confidential Information provide a competitive advantage and will be valuable to each of you in the development and operation of your Restaurant, and (ii) gaining access to such specialized training and Confidential Information is, therefore, a primary reason for entering into this Agreement. In consideration for such specialized training, Confidential Information and rights, you agree that:

• (1) during the Term, except as we otherwise approve in writing, neither you nor any of your Owners and Operator (and members of their immediate family) will, either directly or indirectly, anywhere in the world, for yourself or themselves or through, on behalf of, or in conjunction with any other Person:
  • (a) divert, or attempt to divert, any business or customer of your Restaurant to any competitor, by direct or indirect inducement or otherwise;
  • (b) except with respect to other Cicis 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

Source: Item 22 — CONTRACTS (FDD pages 64–65)