How does Cicis's Item 11, regarding site selection assistance, relate to the restrictions on sources of products and services described in Item 8?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- Review sites you propose for the development of the Restaurant and, at our discretion, accept the proposed site and execute our then-current form of Franchise Agreement with you and your approved affiliate (Area Development Agreement, Sections 2.D and Section 2.E.)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Item 11 outlines Cicis's role in reviewing and potentially accepting a franchisee's proposed site for a new restaurant. This is directly related to Item 8, which mandates that franchisees must use only approved Operating Assets (food, beverage, construction materials, fixtures, equipment, etc.) that adhere to Cicis's System Standards for appearance, function, and performance. Therefore, the site selection process in Item 11 is intertwined with the purchasing restrictions detailed in Item 8 because the chosen location must be suitable for the specific types of materials, equipment, and overall design that Cicis requires.
In practical terms, a prospective Cicis franchisee needs to understand that the site they propose must not only meet Cicis's general approval but also accommodate the specific operational requirements dictated by the brand's System Standards. This means the franchisee cannot choose a location that would necessitate deviations from Cicis's approved suppliers or required Operating Assets. For example, if a particular piece of equipment is essential and requires specific utility connections or space, the site must be able to accommodate it.
This interrelation between site selection and purchasing restrictions carries significant implications. A franchisee might find a seemingly ideal location, but if it doesn't align with Cicis's System Standards and approved suppliers, the site could be rejected. Furthermore, the franchisee is obligated to purchase 90% to 95% of the total cost incurred in establishing and operating their Cicis Restaurant from required sources. This highlights the importance of carefully evaluating potential sites in light of these restrictions and understanding that Cicis retains considerable control over both the location and the resources used to establish and run the franchise.