What is the Managing Owner's role in the operation of a Cicis restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
You must identify 1 natural person with at least a 25% ownership interest and 25% voting power in you and who will have the authority of a chief executive officer (the "Managing Owner"). In addition to exercising general supervisory responsibility for your activities under this Agreement, the Managing Owner shall directly oversee your Cicis Restaurant's operations, unless you designate another natural person whom we approve to serve as your "Operator". Your Operator must successfully complete our initial training program and all other mandatory trainings that we offer.
Each of your direct and indirect owners and your and their spouses will execute a guaranty in the form we prescribe undertaking personally to be bound, jointly and severally, by all provisions of the Franchise Agreement, the Area Development Agreement and any ancillary agreements
between you and us. A spouse who signs the guaranty solely in his or her capacity as a spouse (and not as an owner) is signing merely to acknowledge and consent to the execution of the guaranty by his or her spouse and to bind the assets of the marital estate as described and for no other purpose. You may disclose the Confidential Information to your employees who need to know its contents provided they are themselves bound by written obligations of confidentiality.
During the term of the Franchise Agreement, neither your direct and indirect owners and Operator (and members of their immediate family) shall (i) divert, or attempt to divert, any business or customer of your Cicis Restaurant to any competitor, by direct or indirect inducement or otherwise; (ii) except with respect to other Restaurants operated under valid Franchise Agreements with us, own, maintain, operate, engage in, be employed by, or have any financial or beneficial interest in, advise, assist, aid, make loans to, act as landlord to, or otherwise support, anywhere in the world, any Competing Business (defined below); or (iii) interfere with our relationships with any supplier to Cicis Restaurants or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System.
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, the Managing Owner plays a crucial role in overseeing the operations of a Cicis restaurant. The Managing Owner must have at least a 25% ownership interest and 25% voting power in the franchise entity and holds the authority of a chief executive officer. This individual is responsible for the general supervision of the franchisee's activities under the Franchise Agreement. However, the Managing Owner can designate another approved person as the "Operator" to directly oversee the restaurant's daily operations.
The Managing Owner, along with any designated Operator, must be approved by Cicis and meet the qualifications and standards set forth by Cicis. Both the Managing Owner and the initial Operator are required to successfully complete Cicis's initial training program. This training is essential, and failure to complete it satisfactorily can lead to the franchisee needing to designate a new Managing Owner or Operator. Failure to comply with training requirements may result in the termination of the Franchise Agreement.
The franchisee must ensure that the Managing Owner and any Operator have sufficient decision-making authority to effectively and efficiently operate the Cicis restaurant. The Operator (or the Managing Owner if serving as the Operator) must dedicate their full-time efforts to supervising the restaurant's operations. They may also supervise other Cicis restaurants owned by the franchisee with Cicis's consent. The Managing Owner and Operator are prohibited from engaging in any conflicting business activities or actions that could harm the goodwill associated with the Cicis brand.