What happens if a Cicis franchisee violates the confidentiality agreement?
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.
If any such default is not cured within the specified time, or such longer period the Laws may require, we may terminate this Agreement effective immediately on written notice to you.
C. Alternative Remedies. Without limiting any of our rights set forth above, if at any time we have, but have not yet exercised, our right to terminate this Agreement for any reason, we may, in our sole discretion, in addition to other remedies we might have and without waiving any rights with respect to the default, require that you cease operating your Restaurant until the earlier of the default which serves as the basis for our right to terminate is cured or we exercise our right to terminate. You hereby waive all claims against us and our affiliates arising from any suspension provided for in this Section 15.C, and you hereby indemnify us against any claims brought by any third parties arising out of our exercise of our rights under this Section 15.C, in connection with your indemnity obligations set forth in Section 14 above.
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.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 42–43)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, franchisees are exposed to confidential information about the Cicis system, including growth plans, site selection criteria, training materials, system standards, vendor knowledge, proprietary software, customer data, and operating results. Franchisees, their owners, employees, and independent contractors must adopt procedures to prevent unauthorized use or disclosure of this information. They are prohibited from disclosing or using Cicis' confidential information for any purpose other than operating their franchise during the term of the agreement and afterward.
If a franchisee violates the confidentiality agreement, Cicis has the right to terminate the Franchise Agreement. If the franchisee does not cure the default within the specified time, Cicis may terminate the agreement immediately upon written notice.
Even if Cicis has not yet terminated the agreement, they may require the franchisee to cease operating the restaurant until the default is cured or until Cicis exercises its right to terminate. The franchisee waives all claims against Cicis and its affiliates arising from any such suspension and must indemnify Cicis against any third-party claims resulting from the exercise of these rights.
Upon termination of the Franchise Agreement, the franchisee must immediately cease using and return all confidential information to Cicis. They must also stop using the Cicis marks. Failure to de-identify the restaurant according to Cicis' standards allows Cicis to correct the deficiency at the franchisee's expense.