If the franchisee is not a natural person, what must their governing documents for their Cicis franchise provide regarding their business activities?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are not a natural person:
- (2) your governing documents will at all times provide that your activities are confined exclusively to operating your Restaurant, unless otherwise consented to by us in writing;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, if the franchisee is not a natural person, such as a corporation or LLC, their governing documents must stipulate that their business activities are exclusively limited to operating the Cicis restaurant. Any deviation from this requires written consent from Cicis. This provision ensures that the franchisee's business focus remains solely on the Cicis franchise, preventing potential conflicts of interest or divided attention across multiple ventures.
This requirement is designed to protect the Cicis brand and operational standards. By restricting the franchisee's activities to the Cicis restaurant, the franchisor aims to maintain consistency and quality across all franchise locations. This also allows Cicis to have greater control over the franchisee's business practices, ensuring adherence to the franchise agreement and system standards.
For a prospective franchisee, this means that if they plan to operate the Cicis franchise through a business entity, the entity's formation documents must explicitly state that its activities are confined to running the restaurant. Any desire to engage in other business ventures through the same entity would necessitate prior written approval from Cicis, adding a layer of administrative complexity and potentially limiting the franchisee's entrepreneurial flexibility.