factual

What is the franchisee prohibited from doing regarding the Cicis brand after the Cicis franchise agreement is terminated?

Cicis Franchise · 2025 FDD

Answer 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.

  • (c) 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; and
  • (2) for a continuous uninterrupted period commencing upon the expiration or termination of, or a Transfer (defined below) described in, this Agreement and continuing for two (2) years thereafter, except as we otherwise approve in writing, neither you nor any of your Owners and Operator (and members of their immediate family) will, directly or indirectly, for yourselves, or through, on behalf of, or in conjunction with any other Person, by direct inducement or otherwise, engage in any activities described in Section 9.C(1) above in respect of any Competing Business:
    • (a) at the Location; or
    • (b) within the Protected Area; or
    • (c) if this Agreement is executed pursuant to a development agreement, within the development area described therein; or
    • (d) within a 10-mile radius of (i) the Location, (ii) the Protected Area, (iii) the development area, if applicable, or (iv) any Cicis Restaurant or other Cicis-branded food service facility in existence or under construction as of the date of this Agreement or at the commencement of the obligation described in this Section 9.C(2).

If any person restricted by this Section 9C(2) fails to comply with the foregoing obligations as of the date of expiration, termination, or Transfer, the 2-year restricted period for that person will commence on the date the person begins to comply 9C(2), which may be the date a court order is entered enforcing this provision.

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, and return (or destroy, if directed) any Confidential Information.

Specifically, for a continuous period of two years after the agreement ends, the franchisee, their owners, and their immediate family are restricted from engaging in any activities that could harm the goodwill associated with the Cicis brand and system. This includes involvement in any competing business at the original franchise location, within the protected area, within a development area (if applicable), or within a 10-mile radius of these locations, or near any existing or under-construction Cicis restaurant.

If a person fails to comply with these obligations from the date of expiration, termination, or transfer, the two-year restricted period will only begin when the person starts to comply with the obligations. This may be the date a court order is entered enforcing this provision. This non-compete clause is designed to protect Cicis's market presence and brand reputation by preventing former franchisees from leveraging their knowledge and experience to directly compete with the Cicis system shortly after leaving it.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.