How does Cicis's Item 1, defining the franchisor, 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. | |
| b. | Franchise Agreement – | Items 5, 6, 7, 8, 9, |
| Pre-opening | Section 6 | |
| purchases/leases | Area Development Agreement – N/A | and 11 |
| 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 | |
| Obligation | Section in Agreement | Disclosure Document item |
| -------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------- |
| d. | Franchise Agreement - | Items 6 and 11 |
| Initial and ongoing | Sections 4.B. and | |
| training | 5.F. Area Development Agreement – N/A | |
| e. | Franchise Agreement - | Items 7 and 11 |
| Opening | Section 2.C. Area Development Agreement – Section 2 | |
| f. Fees | Franchise Agreement – Section 4 and Reopen Incentive Addendum, Underperforming Incentive Addendum, Development Incentive Addendum, and Veteran's Incentive Addendum Area Development Agreement – Section 3, Development Incentive Addendum, and Veteran's Incentive Addendum | Items 5, 6, 7, 8, and 11 |
| g. | Franchise Agreement - | Items 8, 11, 14, and |
| Compliance with | Section 6 | |
| standards and policies/Operating Manual | Area Development Agreement – N/A | 16 |
| h. | Franchise Agreement - | Items 11, 13, and |
| Trademarks and | Section 8 | 14 |
| proprietary | Area Development Agreement – | |
| information | N/A | |
| i. | Franchise Agreement - | Items 8 and 16 |
| Restrictions on | Sections 6.D, 6.E., | |
| products/services | and 6.F. | |
| offered | Area Development Agreement – N/A | |
| j. | Franchise Agreement - | Item 8 |
| Warranty and | Section 6.D. and | |
| customer service | 6.F. | |
| requirements | Area Development Agreement – N/A | |
| k. Territorial development and sales | Franchise Agreement – N/A | Item 12 |
| quotas | Area Development Agreement - Section 2 | |
| l. | Franchise Agreement – | Item 8 |
| Ongoing | Section 6 | |
| product/service | Area Development Agreement – | |
| purchases | N/A | |
| m. Maintenance, appearance and remodeling requirements | Franchise Agreement - Sections 2, 6.A. and 6.B., and Reopen Incentive Addendum Area Development Agreement – N/A | Items 8, 11, 16, and 17 |
| n. | Franchise Agreement – | Items 7 and 8 |
| Insurance | Section 11 | |
| Obligation | Section in Agreement | Disclosure Document item |
| ------------------------------------------- | -------------------------------------------------------------------- | ----------------------------- |
| Area Development Agreement – N/A | ||
| o. | Franchise Agreement – | Items 6, 8, and 11 |
| Advertising | Section 7 Area Development Agreement – N/A | |
| p. Indemnification | Franchise Agreement – Section 14 Area Development Agreement – Section 8.B. | Item 6 |
| q. Owner's participation/managem | Franchise Agreement – Sections 5.C., 5.D. and 5.E. | Items 1, 11, and 15 |
| ent/staffing | Area Development Agreement – Section 1.B. | |
| r. | Franchise Agreement – | Item 6 |
| Records and reports | Section 10 Area Development Agreement – Section 4 | |
| s. | Franchise Agreement –Sections 1.B., 2.B., | Items 6, 8, and 11 |
| Inspections and audits | 6.F., and 10.C. Area Development Agreement – N/A | |
| t. | Franchise Agreement – | Items 6 and 17 |
| Transfer | Section 13 Area Development Agreement – Section 5 | |
| u. Renewal (or Extension of Rights) | Franchise Agreement – Section 3.B. of Franchise Agreement Area Development Agreement – N/A | Items 6 and 17 |
| v. | Franchise Agreement - | Items 6 and 17 |
| Post-termination | Section 16 | |
| obligations | Area Development Agreement – Section 7 | |
| w. | Franchise Agreement - | Item 17 |
| Noncompetition | Sections 9.C. and | |
| covenants | 16.H. Area Development Agreement -N/A | |
| x. Dispute resolution | Franchise Agreement - Section 17.E., 17.F., and 17.G. Area Development Agreement – Section 9 | Items 6 and 17 |
| y. | Franchise Agreement – | |
| Guarantee | Attachment B | |
| Obligation | Section in Agreement | Disclosure Document item |
| ------------ | ------------------------------ | ----------------------------- |
| Area Development Agreement – | Special Risk | |
| sheet, | ||
| Attachment B | Items 1 and 15 |
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Item 1 outlines the franchisor's identity and its affiliates, which is relevant to a franchisee's obligations as detailed in Item 9. Specifically, Item 1 identifies CiCi Enterprises as the original franchisor and notes that new agreements are now with the current franchisor. It also names affiliates like CiCi Services LLC, which handles gift cards, JMC Restaurant Distribution, LP, which manages the supply chain, and Yes Caps, LLC, which owns the trademarks. These entities play a role in the franchisee's obligations.
Item 9 references Item 1 in the context of 'Owner's participation/management/staffing,' indicating that the franchisee's obligations regarding management and staffing are related to the franchisor's identity and potentially the roles of its affiliates. This suggests that Cicis franchisees must adhere to specific guidelines or requirements related to management and staffing, possibly influenced by the franchisor and its affiliates. For example, the franchisee may be required to participate in training programs (as mentioned in Item 11) or adhere to operational standards set by the franchisor to maintain consistency across all Cicis restaurants.
Furthermore, the franchisee's obligations concerning compliance with standards and policies, trademarks, and product purchases are indirectly linked to the entities described in Item 1. For instance, franchisees must comply with standards to protect the trademarks owned by Yes Caps, LLC, and they may be required to purchase supplies from JMC Restaurant Distribution, LP. Understanding the relationships between the franchisor and its affiliates, as detailed in Item 1, is crucial for a franchisee to comprehend and fulfill their obligations effectively.
In summary, Item 1 provides context for the franchisee's obligations by defining the franchisor and its affiliates, which have a direct impact on various aspects of the franchise operation, including management, staffing, supply chain, and brand standards. A prospective franchisee should carefully review Item 1 in conjunction with Item 9 to fully understand these interconnected responsibilities and relationships.