What Operating Assets does Cicis designate third-party suppliers for?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We have designated third-party suppliers for the following Operating Assets and you must purchase such goods and services from those suppliers: food and beverage products; the initial restaurant equipment, furniture, fixture, supplies & décor package; smallwares; branded merchandise; the point-of-sale system; digital menu boards; game room card readers; computer system and other technology infrastructure requirements; vehicles for delivery; third-party delivery service providers; construction contractor; marketing materials; and insurance.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–28)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis designates specific third-party suppliers from whom franchisees must purchase certain operating assets. These include food and beverage products, the initial restaurant equipment, furniture, fixture, supplies, and décor package. Franchisees are also required to source smallwares, branded merchandise, the point-of-sale system, digital menu boards, game room card readers, computer systems and other technology infrastructure requirements, and vehicles for delivery from Cicis's designated suppliers. Additionally, franchisees must use Cicis's designated third-party delivery service providers, construction contractors, and suppliers for marketing materials and insurance.
This requirement ensures consistency and quality across all Cicis restaurants, as the franchisor can maintain standards for appearance, function, and performance. It also allows Cicis to leverage volume purchasing power, potentially leading to cost savings that may or may not be passed on to franchisees. However, franchisees have limited choice in selecting suppliers for these essential operating assets, which could impact their ability to negotiate prices or customize their restaurant to local preferences.
It is important for prospective franchisees to carefully review the list of designated suppliers in the Operations Manual and understand the terms and conditions of these supplier relationships. Franchisees should also inquire about the process for suggesting or requesting approval of alternative suppliers if they are dissatisfied with the designated options. Understanding these requirements is crucial for managing costs and maintaining operational efficiency within the Cicis franchise system.