What is the Cicis franchisee's obligation regarding the use of any designation of origin that falsely suggests a connection with Cicis after termination, constituting unfair competition?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
If you continue to operate or subsequently begin to operate any other business, then you must not use any reproduction, counterfeit, copy, or colorable imitation of the Marks, either in connection with such other business or the promotion thereof, which is likely to cause confusion, mistake, or deception, or which is likely to dilute our or our affiliates' rights in and to the Marks, and you must not utilize any designation of origin, description, or representation which falsely suggests or represents an association or connection with us constituting unfair competition.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, after the termination of the Franchise Agreement, a franchisee must not utilize any designation of origin, description, or representation that falsely suggests an association or connection with Cicis. Doing so would constitute unfair competition. This restriction applies if the franchisee continues to operate or subsequently begins to operate any other business.
This means that a former Cicis franchisee cannot imply any affiliation with Cicis after the agreement ends. This includes using similar branding, logos, or any representation that could mislead customers into believing the business is still connected to the Cicis franchise. The purpose of this clause is to protect Cicis's brand and prevent customer confusion.
This requirement is standard in franchising to protect the brand's integrity and prevent former franchisees from trading on the brand's reputation without authorization. Failing to comply with this provision could lead to legal action from Cicis to protect its trademarks and brand identity.