Can owners of a Cicis franchise own other Cicis Restaurants?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We also offer to certain qualified entities the right and obligation to acquire multiple franchises for the development and opening of Cicis Restaurants (the "Development Rights") within an agreed upon geographic territory (the "Development Area") and according to an agreed upon schedule (the "Development Schedule"). To acquire the Development Rights, you must sign our form of area development agreement and related agreements, the current forms of which are attached to this Disclosure Document as Exhibit C (the "Area Development Agreement"). You and we will agree on both the Development Area and the Development Schedule before signing, and each will be identified in, the Area Development Agreement. Our typical Area Development Agreement requires development of 2 or 3 Cicis Restaurants, with the final agreed upon number being reflected in the Area Development Agreement you sign. You will sign the Franchise Agreement for the 1st Cicis Restaurant when you sign the Area Development Agreement. For each subsequent Cicis Restaurant you commit to develop, you must sign our then-current form of
Franchise Agreement, which may be materially different than the form we were using when you signed the Area Development Agreement.
Your direct and indirect owners will be required to sign an agreement (the current form of which is attached as Attachment B to the Franchise Agreement and the Area Development Agreement) pursuant to which they each personally assume and guarantee your obligations under the Franchise Agreement and the Area Development Agreement (each a "Guaranty"). If the spouses of your owners are not themselves owners of you, we will require them to sign the Guaranty solely to acknowledge that you are signing it to bind yourself and any marital property. A non-owner spouse is not otherwise obligated under the Guaranty.
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 the 2025 Cicis Franchise Disclosure Document, owners can acquire multiple franchises through a Development Rights agreement. Cicis offers qualified entities the right and obligation to acquire multiple franchises for development and opening restaurants within a specific geographic territory and schedule.
To obtain these Development Rights, a prospective franchisee must sign an Area Development Agreement. These agreements typically require the development of 2 or 3 Cicis restaurants, with the final number agreed upon and documented in the Area Development Agreement. When signing the Area Development Agreement, the franchisee also signs the Franchise Agreement for the first Cicis restaurant. For each subsequent restaurant under the development agreement, the franchisee must sign the then-current form of the Franchise Agreement, which may differ from the original.
Furthermore, all direct and indirect owners are required to sign a guaranty, ensuring they are personally bound by the obligations outlined in both the Franchise Agreement and the Area Development Agreement. This indicates that Cicis actively supports and facilitates the ownership of multiple franchise locations by the same owner, provided they meet the franchisor's qualifications and agree to the terms of the Development Rights and associated agreements.