For how long after termination or expiration of the Cicis Franchise Agreement are owners restricted from engaging in a Competing Business?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
iness, or (iii) grants franchises or licenses for or provides services to any of the foregoing.
For a continuous uninterrupted period 2 years after the termination or expiration of the Franchise Agreement, neither you nor any of your Owners and Operator (and members of their immediate family) will, directly or indirectly, engage in Competing Business (i) at the location of your Cicis Restaurant; (ii) within the Protected Area; (iii) if this Agreement is executed pursuant to a development agreement, within the development area described therein; or (iii) within a 10-mile radius of (a) the location of your Cicis Restaurant, (b) the Protected Area, (c) the Development Area, if applicable, or (iv) any Cicis-branded food service facility.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
Under the Area Development Agreement, you are not authorized to sell anything. Under the Franchise Agreement, you agree that you will: (1) offer and sell from your Cicis Restaurant all of the products and services that we specify at our discretion;
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 43–44)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if the Franchise Agreement is terminated or expires, the franchisee, their owners, and their immediate family members are restricted from engaging in a Competing Business for two years. This restriction applies to operating a Competing Business at the Cicis Restaurant location, within the Protected Area, within the Development Area (if applicable), or within a 10-mile radius of these locations or any Cicis-branded food service facility. A Competing Business is defined as one that derives more than 50% of its revenue from selling pizza through authorized distribution methods, functions as a commissary to such businesses, or grants franchises or licenses for such businesses.
The non-compete obligation lasts for a "continuous uninterrupted period" of two years. If a person fails to comply with the non-compete obligations upon termination, expiration, or transfer, the two-year restricted period will commence on the date the person begins to comply with the obligations. This could be the date a court order is issued to enforce the provision.
This non-compete clause is fairly standard in franchising to protect the brand and prevent franchisees from using Cicis's business model and trade secrets to directly compete after leaving the system. Prospective franchisees should carefully consider the scope and duration of this restriction, as it could significantly limit their business opportunities after the franchise agreement ends. It is important to understand the definition of "Competing Business" and the geographic limitations to assess the potential impact on future business ventures.