Can a Cicis franchisee rely on Cicis' acceptance of a site as a guarantee of profitability?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Despite any assistance we may provide, you are entirely responsible for locating and presenting to us proposed sites for Restaurants in the Development Area as necessary to comply with the Development Schedule (each a "Site"). You agree to give us all information and materials we request to assess each proposed Site as well as your or, as applicable, your proposed Affiliate's financial and operational ability to develop and operate a Restaurant at the proposed Site. We have the absolute right to reject any site or any Affiliate (a) that does not meet our criteria or (b) if you or your Affiliates are not then in compliance with any existing Franchise Agreements executed pursuant to this Agreement. Our acceptance of your Site is for our own internal purposes. Even if we have suggested or assisted you in finding the Site, you may not rely on our acceptance as a representation, promise, warranty, or guarantee that the Site will meet your own expectations or that your Restaurant will be profitable or otherwise successful, or for any other purpose whatsoever.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, a franchisee cannot rely on Cicis' acceptance of a site as a guarantee of profitability. While Cicis may offer assistance in locating potential restaurant sites, the franchisee bears the ultimate responsibility for selecting and presenting sites for approval. Cicis retains the right to reject any proposed site that does not meet its criteria or if the franchisee is not in compliance with existing franchise agreements.
Cicis' acceptance of a site is explicitly stated to be for internal purposes only and should not be interpreted as a representation, promise, warranty, or guarantee of the site's suitability or the restaurant's future financial performance. This means that even if Cicis suggests or helps find a location, the franchisee is still responsible for conducting their own due diligence to determine if the site aligns with their expectations and business goals.
This disclaimer is a standard practice in franchising, as franchisors cannot guarantee the success of any particular location due to various market factors and the franchisee's own operational capabilities. Prospective Cicis franchisees should conduct thorough market research, assess local competition, and carefully evaluate the potential profitability of any proposed site before signing a lease or franchise agreement. Relying solely on the franchisor's approval without independent verification could lead to financial losses.