Can a Cicis franchisee use Confidential Information for purposes other than operating their franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that you, your Owners, your employees and independent contractors will adopt and implement reasonable procedures to prevent unauthorized use or disclosure of the Confidential Information. Further, you and your Owners, and your employees, and independent contractors will not, during the Term or at any time thereafter, disclose any of our Confidential Information to any other Person or use any of our Confidential Information for any purposes other than the business you own and operate pursuant to this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from using Confidential Information for any purpose other than operating their Cicis franchise. The agreement states that during the term of the franchise agreement and thereafter, franchisees, their owners, employees, and independent contractors cannot disclose Confidential Information to any other person or use it for purposes outside of their Cicis business. This restriction is designed to protect Cicis's proprietary information and maintain a competitive advantage.
Confidential Information includes a wide array of data and materials related to the Cicis system. This includes growth and development plans, site selection criteria, training and operations manuals (including recipes), System Standards, methods, formats, specifications, market research, customer data, vendor knowledge, proprietary software, customer lists, and financial performance data of Cicis Restaurants. The definition is comprehensive, covering virtually all aspects of the Cicis business model and operations.
The agreement also requires franchisees to implement reasonable procedures to prevent unauthorized use or disclosure of Confidential Information. This means franchisees must take proactive steps to safeguard this information, such as establishing internal protocols, training employees on confidentiality, and securing sensitive data. Failure to comply with these confidentiality obligations could result in legal action from Cicis, including potential termination of the franchise agreement and financial penalties.