How does Cicis's Item 8, regarding standards and specifications, relate to the franchisor's assistance outlined in Item 11?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Standards and Specifications: In order to maintain the quality and uniformity of all food products, menu items, ingredients, services, products, materials, forms, items, supplies, fixtures, furnishings and equipment utilized in or by Cicis Restaurants, we may, at our discretion, issue certain mandatory standards, specifications, operating procedures and rules (the "System Standards"). You must strictly comply with all System Standards. In constructing and operating the Restaurant, you must use only those types of food and beverage items, condiments, construction and decorative materials, fixtures, equipment, furniture and signs and other products and services ("Operating Assets") that we have approved according to our System Standards for appearance, function and performance. We will not issue to you or to our approved suppliers (except as we deem necessary for purposes of production) the System Standards for proprietary Operating Assets. We will otherwise communicate our System Standards and the approved Operating Assets to you in the
prototype architectural plans for a Cicis Restaurant, in the Operations Manual and otherwise in writing.
Approved or Designated Suppliers; Restricted Purchases: To further facilitate consistency and quality among Cicis Restaurants and our ability to leverage volume purchasing power, we may approve or designate vendors and suppliers for some or all the Operating Assets. We are not approved suppliers of any Operating Asset but as noted in Item 5 above, our affiliate, JMC, is the sole approved supplier of certain items that you will use in the development and operation of your Cicis Restaurant. You will be required to participate in our gift and loyalty card programs that are currently conducted by and through our affiliate, CiCi Services. We will provide a list of approved and designated suppliers in the Operations Manuals or otherwise in writing.
We have designated third-party suppliers for the following Operating Assets and you must purchase such goods and services from those suppliers: food and beverage products; the initial restaurant equipment, furniture, fixture, supplies & décor package; smallwares; branded merchandise; the point-of-sale system; digital menu boards; game room card readers; computer system and other technology infrastructure requirements; vehicles for delivery; third-party delivery service providers; construction contractor; marketing materials; and insurance.
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Item 8 and Item 11 are related because Item 8 describes the System Standards that Cicis may issue to maintain quality and uniformity, while Item 11 outlines how Cicis will communicate these standards to franchisees. Specifically, Item 11 states that Cicis will provide franchisees with System Standards and other suggested standards, specifications, and procedures for operating the restaurants. This indicates that Cicis actively assists franchisees by providing the necessary guidelines for maintaining brand consistency. These standards are communicated through prototype architectural plans, the Operations Manual, and other written forms.
Item 8 also notes that franchisees must use only approved Operating Assets that meet Cicis's System Standards for appearance, function, and performance. Item 11 complements this by stating that Cicis will provide the names of designated suppliers and a list of all Operating Assets. This assistance ensures that franchisees can readily identify and source the required materials and equipment that comply with Cicis's standards. However, Cicis does not directly provide, deliver, or install any Operating Assets to franchisees.
Furthermore, Item 11 mentions that Cicis will provide franchisees access to the Manuals, which contain mandatory specifications, standards, operating procedures, and rules, as well as other suggested specifications, standards, and policies. These Manuals are periodically updated to reflect changes in System Standards, ensuring that franchisees stay informed of any modifications. Franchisees are obligated to maintain these standards to ensure uniformity across all Cicis restaurants. Therefore, the assistance provided in Item 11 directly supports the standards and specifications detailed in Item 8, enabling franchisees to meet Cicis's requirements for quality and consistency.