If Cicis does not impose a maximum or minimum price, can they still regulate pricing?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Information (defined below) and must be protected against improper use and disclosure. You may disclose the Manuals to your employees who need to know its contents provided they are themselves bound by written obligations of confidentiality. You may not at any time copy, duplicate, record, or otherwise reproduce, distribute or publish any part of the Manuals or use its contents in any other business.
- D. System Standards and Specifications. You understand the importance of maintaining uniformity among all of the Cicis Restaurants and the importance of complying with all of our standards, specifications, policies, and procedures relating to the operation of your Restaurant and, therefore, agree to comply with all System Standards as they exist from time to time. Though we retain the right to establish and periodically modify System Standards, you retain the right and sole responsibility for the day-to-day management and operation of your Restaurant and the implementation and maintenance of System Standards at your Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Cicis retains the right to establish and modify System Standards, which can regulate various aspects of restaurant operations. These standards include sales, marketing, advertising, and promotional programs. While the document does not explicitly state that Cicis can directly control maximum or minimum prices, the ability to regulate marketing and promotional programs could indirectly influence pricing strategies at the franchisee level. Franchisees must adhere to these System Standards, giving Cicis some leverage over how products are marketed and potentially priced.
System Standards also cover menu aspects, including product offerings and appearance. This suggests Cicis can influence the perceived value and presentation of menu items, which can affect pricing decisions. Additionally, franchisees must participate in test marketing and customer satisfaction programs authorized by Cicis, potentially providing data that informs pricing strategies. The requirement to use Cicis's proprietary items and purchase promotional merchandise from approved suppliers also impacts costs, which franchisees may need to factor into their pricing.
While franchisees have the right and responsibility for the day-to-day management of their restaurants, they must implement and maintain System Standards. This balance means franchisees have some autonomy in pricing decisions, but they must align with Cicis's broader marketing and operational strategies. Prospective franchisees should clarify the extent to which Cicis's System Standards and marketing programs might influence or restrict their pricing flexibility.