If the Cicis franchisee is a business entity, what other activities besides those in the Franchise Agreement are they allowed to conduct?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- use and license others to use the System and any elements of the System in any business located or operated anywhere in the world;
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- own and operate, and license others to own and operate, or otherwise become associated with, any business, anywhere in the world, that uses or is identified by any names, symbols or trademarks, except, as described above, in a restaurant that is located in the Development Area and is identified by the Marks;
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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.
C. SATISFACTION OF DEVELOPMENT SCHEDULE.
The Development Schedule is not our representation, express or implied, that the Development Area can support, or that there are or will be sufficient sites for, the number of Restaurants specified in the Development Schedule or for any particular Development Period. We
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 FDD, Cicis as the franchisor retains significant freedom to operate other businesses, even those that might compete with its franchisees. Specifically, Cicis reserves the right to use and license the Cicis system to others globally, own and operate other businesses under different brands, engage in transactions with other businesses, solicit customers anywhere, and market Cicis products through alternative channels. These rights are retained by Cicis regardless of the franchisee's development area.
This means that a Cicis franchisee's territory is not exclusive in the traditional sense. Cicis can pursue various business activities that might impact a franchisee's market, such as online sales, partnerships with grocery stores, or even operating competing restaurant concepts under different names. While the franchisee is bound by the Franchise Agreement, Cicis retains considerable latitude in its own business dealings.
For a prospective franchisee, this highlights the importance of understanding the competitive landscape and potential for internal competition from the franchisor itself. While the franchisee focuses on operating their Cicis restaurant, the franchisor can explore other avenues for expanding the brand's reach, potentially impacting the franchisee's sales and market share. It is important to note that the Development Schedule is not a guarantee that the Development Area can support the number of Restaurants specified.