Does the Managing Owner for a Cicis franchise need to be a natural person?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to the execution of this Agreement, you must designate and at all times maintain an Owner who is a natural person approved by us to serve as your Managing Owner ("Managing Owner"), with primary responsibility for the supervision of your activities under this Agreement.
Your initial Managing Owner is identified on Attachment A.
Unless otherwise approved by us, the Managing Owner will be the same for all franchise agreements executed pursuant to any Development Agreement between you (or your affiliate) and us and the same as the Managing Owner designated under any such Development Agreement.
The Managing Owner must own and maintain at least 25% of the direct ownership interests in you.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Managing Owner of a Cicis franchise must be a natural person. Specifically, prior to the execution of the Franchise Agreement, the franchisee must designate and maintain an owner who is a natural person approved by Cicis to serve as the Managing Owner. This Managing Owner has primary responsibility for supervising the franchisee's activities under the Franchise Agreement.
This requirement ensures that Cicis has a direct point of contact who is an individual person, not a corporate entity. This individual is accountable for the franchise's operations and compliance with the franchise agreement. The Managing Owner must also own and maintain at least 25% of the direct ownership interests in the franchise.
In addition to being a natural person, the Managing Owner must be approved by Cicis and maintain that approval throughout their tenure. The Managing Owner is also required to successfully complete Cicis's initial training program. This training is essential to ensure the Managing Owner understands the Cicis system and can effectively manage the restaurant. The Managing Owner must also have sufficient decision-making authority to ensure the restaurant operates efficiently.
If the Managing Owner fails to complete the training program satisfactorily, Cicis will allow the franchisee to designate a new Managing Owner, who must also be approved and complete the training. Failure to have a qualified Managing Owner can lead to the termination of the Franchise Agreement. This requirement is in place to protect the Cicis brand and ensure consistent quality and operational standards across all franchise locations.