How does Cicis's Item 11, regarding site selection assistance, relate to the franchisee's obligations outlined in Item 9?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Agreement | Disclosure Document item |
|---|---|---|
| a. | Franchise Agreement – | Items 8 and 11 |
| Site selection and | Section 1.B. | |
| acquisition/lease | Area Development Agreement – Section 2.D. | |
| c. Site development and other pre-opening | Franchise Agreement - Sections 2, 5.D., 5.E., and 5.F. | Items 7, 8, and 11 |
| requirements | Area Development Agreement – N/A |
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
Pre-Opening Obligations under the Franchise Agreement
Before you open your Cicis Restaurant, we will:
-
- Review and, at our discretion, accept the proposed site for your Cicis Restaurant. Our determination to accept or not accept a site may be based on various criteria (such as demographics, proposed rental rates, neighborhood and nearby business counts and characteristics, nearby residential populations, traffic count, accessibility, parking, visibility, signage, and competition) which may change in our discretion. We typically accept or reject the proposed site within 30 days of your providing us all required information. It is your responsibility to secure our approval of the proposed site for your Cicis Restaurant within 120 days following the execution of the Franchise Agreement, and if you fail to do so we may terminate the Franchise Agreement. We do not lease Cicis Restaurant premises to our franchisees. (Franchise Agreement, Section 1.B.)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Item 11 outlines the franchisor's assistance, advertising, computer systems, and training provided to franchisees, while Item 9 details the franchisee's obligations. Specifically, Item 11 describes Cicis's role in reviewing and potentially accepting the proposed site for a new Cicis restaurant. This assistance is directly related to the franchisee's obligation, as listed in Item 9, regarding site selection and acquisition/lease, as well as site development and other pre-opening requirements.
Item 9 references Section 1.B of the Franchise Agreement and Section 2.D of the Area Development Agreement for site selection and acquisition/lease obligations, and it cross-references Item 11. This means that while Cicis offers assistance in site selection by reviewing and either accepting or rejecting the proposed location, the franchisee bears the primary responsibility for finding and securing a suitable site. Cicis's decision to accept or reject a site is based on criteria like demographics, rental rates, nearby businesses, residential populations, traffic, accessibility, parking, visibility, signage, and competition, which may change at their discretion.
The franchisee is responsible for securing Cicis's approval of the proposed site within 120 days of signing the Franchise Agreement. Failure to do so can result in the termination of the agreement. Cicis does not lease premises to franchisees, further emphasizing the franchisee's responsibility in securing the location. This interplay between Item 11 and Item 9 highlights a shared responsibility: Cicis provides guidance and approval, but the franchisee is ultimately accountable for finding and securing an appropriate site that meets Cicis's standards and criteria within the specified timeframe.
In summary, while Cicis provides assistance in the form of site review and approval as described in Item 11, the franchisee has clear obligations regarding site selection, acquisition, and development as detailed in Item 9. Prospective franchisees should carefully consider these obligations and the potential consequences of failing to meet the site approval deadline.