Does the Operator of a Cicis franchise need to be an owner of the franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
-(2) In addition to exercising general supervisory responsibility for your activities under this Agreement, the Managing Owner shall directly oversee your Restaurant's operations, unless you designate another natural person whom we approve to serve as your "Operator".
Your initial Operator, if applicable, is identified on Attachment A.
An Operator may, but need not, be an owner and will be responsible for overseeing your Restaurant's operations.
- (3) Your Managing Owner and/or Operator must be approved by us, as we determine in our sole discretion.
Once approved, your Managing Owner and Operator must, during the entire period they serve in such capacities, continue to meet our qualifications and such other standards as may be set forth in the Manuals or otherwise conveyed to you in writing.
Your Managing Owner and the initial Operator must successfully complete our initial training program (the duration and scope of which may vary, depending upon such person's prior restaurant operating experience) within a reasonable period of time after the execution of this Agreement and prior to the Opening Date.
If your Managing Owner or Operator fails, in our sole judgment, to satisfactorily complete such program, then we will give you an opportunity to designate a new Managing Owner and/or Operator, who must be approved by us.
If such newly designated Managing Owner or Operator fails to complete the initial training program to our satisfaction prior to the scheduled Opening Date, we may terminate this Agreement in accordance with Section 15.A.(2)(e).
- (4) You must vest the Managing Owner and any Operator with sufficient decision-making authority to expedite the determinations and decisions that are essential to effective and efficient operation of your Restaurant.
Your Operator (and your Managing Owner if your Managing Owner is your Operator) must devote his or her full-time best efforts to the supervision of your Restaurant's operation and, with our consent, to the supervision of other Cicis Restaurants owned by you or your affiliate(s) and operated pursuant to franchise agreement(s) with us.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Operator of a Cicis restaurant does not necessarily need to be an owner. The franchisee can designate someone else to be the Operator, subject to Cicis's approval. The initial Operator, if applicable, is identified on Attachment A of the Franchise Agreement.
The Operator is responsible for overseeing the restaurant's operations. Cicis must approve the Managing Owner and any Operator, and these individuals must continue to meet Cicis's qualifications and standards throughout their service. Both the Managing Owner and the initial Operator are required to complete Cicis's initial training program, the duration and scope of which depends on their prior restaurant operating experience.
The Managing Owner must own and maintain at least 25% of the direct ownership interests in the franchisee. The Operator (and the Managing Owner, if they are also the Operator) must devote their full-time efforts to supervising the restaurant's operation. They can also supervise other Cicis restaurants owned by the franchisee or its affiliates, with Cicis's consent. The franchisee must give the Operator and Managing Owner sufficient decision-making authority to ensure the effective operation of the restaurant.