If Cicis acquires a business in the Development Area, can Cicis convert it to a Cicis brand?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- acquire, be acquired by, merge, affiliate with or engage in any transaction with other businesses (whether competitive or not) located anywhere and, even if such businesses are located in the Development Area, (i) convert the other businesses to the Cicis brand, (ii) allow such other businesses to operate as part of the System, whether or not converted to the Cicis, and/or (iii) permit the other businesses to continue to operate under another name;
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- solicit customers, advertise, and authorize others to advertise, and promote sales of and from Cicis Restaurants, and fill customer orders by providing catering and delivery services anywhere, including within the Development Area; and
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- market and sell, and grant to others the right to market and sell, within and outside of the Development Area, products and services authorized for sale at Cicis Restaurants through alternative channels of distribution such as Internet, catalog sales, telemarketing, or other direct marketing sales (like grocery stores, kiosks, mail order, Internet merchandise sales and catalogue sales, or through Cicis To Go) using the Marks or other trademarks and commercial symbols.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis has the right to acquire other businesses, even those located within a franchisee's Development Area. Cicis can then choose to convert these acquired businesses to the Cicis brand. Alternatively, Cicis can allow the acquired businesses to operate as part of the Cicis system, whether or not they are converted to the Cicis brand. Cicis also has the option to permit these businesses to continue operating under their existing names.
This clause in the franchise agreement is important for prospective franchisees to understand. Even if a franchisee is granted Development Rights for a specific area, Cicis retains the right to acquire existing businesses within that area and operate them under the Cicis brand or another name. This could potentially impact the franchisee's market share and revenue within their Development Area.
It is important to note that Cicis also retains the right to solicit customers, advertise, and promote sales of Cicis Restaurants, as well as fulfill customer orders through catering and delivery services, anywhere, including within the Development Area. Additionally, Cicis can market and sell products and services authorized for sale at Cicis Restaurants through alternative channels of distribution, such as the Internet or direct marketing, both within and outside the Development Area. These rights are reserved by Cicis without any obligation to compensate the franchisee.