Can Cicis operate a restaurant within a franchisee's Development Area if it is considered a Special Venue?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
As long as you are in compliance with this Agreement and except with respect to Special Venues (defined below), we will not, during the Term, (1) operate or grant a Franchise to anyone
else to develop or operate a Cicis Restaurant within the Development Area, or (2) grant Development Rights to anyone else within the Development Area. A "Special Venue" is any (1) location in which foodservice is or may be provided by a master concessionaire, (2) location which is situated within or as part of a larger venue or facility (other than a mall or shopping center) and, as a result, is likely to draw the predominance of its customers from those persons who are using or attending events in the larger venue or facility (for example, colleges/universities, convention centers, airports, hotels, sports facilities and stadiums, theme parks, hospitals, transportation facilities, convenience stores, and other similar captive market locations), or (3) distribution channel other than a Cicis Restaurant through which products and services are or may be sold.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis retains the right to operate or franchise restaurants within a franchisee's Development Area if the location qualifies as a "Special Venue." This means that even if a franchisee has exclusive development rights to a specific area, Cicis can still establish a presence within that area under certain circumstances.
A "Special Venue" is defined as any location where foodservice is or may be provided by a master concessionaire, or any location situated within a larger venue or facility (excluding malls or shopping centers) that primarily draws customers from that larger venue. Examples of Special Venues include colleges/universities, convention centers, airports, hotels, sports facilities and stadiums, theme parks, hospitals, transportation facilities, and convenience stores. This definition also extends to any distribution channel other than a Cicis Restaurant through which products and services are or may be sold.
This reservation of rights allows Cicis to tap into non-traditional locations and captive markets without being restricted by existing Development Area agreements. For a prospective franchisee, this means that while they may have certain exclusive rights within their Development Area, those rights do not extend to Special Venues. Cicis retains the flexibility to operate or franchise in these venues, potentially creating competition within the franchisee's territory, although the customer base may be different. Franchisees should consider the potential impact of Special Venues when evaluating the market potential of their Development Area.