How does Cicis's Item 8, regarding standards and specifications, relate to the pre-opening obligations outlined in Item 11?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Item 8 and Item 11 are related in that Item 8 defines the System Standards that Cicis franchisees must adhere to, while Item 11 outlines Cicis's pre-opening obligations, some of which involve ensuring the franchisee is set up to meet those standards. Item 8 states that Cicis may issue mandatory System Standards for food products, menu items, ingredients, services, products, materials, forms, items, supplies, fixtures, furnishings, and equipment. Franchisees must strictly comply with these standards when constructing and operating their restaurant, using only approved Operating Assets.
Item 11 lists several pre-opening obligations of Cicis. Specifically, Cicis will loan franchisees prototypical architectural and design plans and specifications for their location, which the franchisee must adapt at their own expense. Cicis also provides the names of designated suppliers and a list of all Operating Assets, although they do not directly provide, deliver, or install these assets. Furthermore, Cicis provides access to the Manuals, which contain System Standards, and has the right to revise these Manuals at any time. These pre-opening activities ensure the franchisee is aware of and can implement the System Standards detailed in Item 8 from the outset.
In essence, Item 8 sets the rules, and Item 11 describes how Cicis assists the franchisee in understanding and preparing to follow those rules during the initial setup phase. This includes providing architectural plans, supplier lists, and access to the operations manual, all of which are crucial for a new franchisee to meet Cicis's standards for quality and uniformity. Franchisees need to carefully review both items to understand their obligations and the support Cicis provides.