Can Cicis operate Cicis To Go Restaurants within my Protected Area?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have and retain all rights within and outside the Protected Area that are not expressly and exclusively granted to you under the Franchise Agreement, without any obligation to compensate you and without regard to whether it competes with your Cicis Restaurant, including the right to do and to authorize others to do the following: (i) establish and operate Cicis Restaurants identified by the Marks at any location outside the Protected Area, including locations that are adjacent or proximate to the Protected Area and in any Reserved Area (defined below) whether within or outside the Protected Area, (ii) establish and operate restaurants under other trade names, service marks, and trademarks at any location within or outside of the Protected Area, (iii) establish and operate Cicis To Go Restaurants anywhere in world, including within the Protected Area, (iv) offer and sell, anywhere in the world (including within the Protected Area) any similar or dissimilar products and services, whether identified by the Marks or by other trademarks, trade names or service marks, through any channel or by any method of distribution other than a full-service Cicis Restaurant (including by or through a Cicis To Go Restaurant, the Internet or similar electronic, virtual, or digital medium), on any terms and conditions we deem appropriate, and (v) acquire, be acquired by, merge with, affiliate with or engage in any transaction with other businesses (whether competitive or not) located anywhere and, even if such businesses are located in the Protected Area, (x) convert the other businesses to the Cici's brand and allow them to operate as part of the System, and/or (y) permit the other businesses to continue to operate under another name and incorporate one or more elements of the System.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis retains the right to establish and operate Cicis To Go Restaurants anywhere in the world, including within a franchisee's Protected Area. This means that even if a franchisee has a Protected Area for a full-service Cicis Restaurant, Cicis can still operate Cicis To Go Restaurants within that same area.
This is a significant consideration for potential franchisees as it introduces the possibility of direct competition from Cicis within their Protected Area. While the franchisee is protected from other full-service Cicis Restaurants, this protection does not extend to the Cicis To Go concept. This could impact the franchisee's potential revenue and market share.
It is important for prospective franchisees to understand the implications of this clause and to evaluate the potential impact of Cicis To Go Restaurants on their investment. They should inquire about Cicis's plans for developing Cicis To Go Restaurants in their target market and assess the potential for cannibalization of sales. This is a fairly common practice in the franchise industry, where franchisors often retain the right to explore alternative distribution channels, but franchisees should carefully consider the potential impact on their business.