What minimum ownership interest and voting power must the Managing Owner have in the Cicis franchise?
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.
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, a franchisee must designate a Managing Owner who has specific responsibilities and qualifications. The Managing Owner is a natural person who must have at least a 25% ownership interest and 25% voting power in the franchise entity. This individual holds the authority of a chief executive officer and is responsible for directly overseeing the Cicis Restaurant's operations. However, the franchisee can designate another natural person as the 'Operator' to handle the day-to-day operations, subject to Cicis's approval.
The Managing Owner's role is critical for ensuring compliance with the Franchise Agreement and maintaining the standards set by Cicis. Even if an Operator is appointed, the Managing Owner retains general supervisory responsibility for the franchise's activities. This structure allows for flexibility in managing the restaurant while ensuring that someone with a significant stake in the business is ultimately accountable.
This requirement ensures that someone with a vested interest and sufficient authority is actively involved in the Cicis franchise. The Managing Owner's ownership and voting power align their interests with the success of the restaurant and the Cicis brand. This arrangement is fairly common in franchising, as franchisors often want to ensure that franchisees are actively managed by individuals with a substantial stake in the business.