Is Cicis permitted to acquire or merge with other businesses, even competitive ones, located in the Development Area?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- acquire, be acquired by, merge, 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 Development Area, (i) convert the other businesses to the Cicis brand, (ii) allow such other businesses to operate as part of the System, whether or not converted to the Cicis, and/or (iii) permit the other businesses to continue to operate under another name;
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 acquire, merge, or engage in transactions with other businesses, including those that compete with Cicis, regardless of their location. This includes businesses within a franchisee's Development Area.
Specifically, Cicis has the right to (i) convert these acquired businesses to the Cicis brand, (ii) allow them to operate as part of the Cicis system, whether or not they are converted, and/or (iii) permit them to continue operating under a different name. This reservation of rights gives Cicis considerable latitude to alter the competitive landscape, even within a territory granted to a developer.
For a prospective franchisee, this means that even with Development Rights to an area, Cicis could still introduce competition through acquisition or merger. The franchisee would not necessarily have grounds to object, as Cicis retains these rights explicitly. This clause highlights the importance of a thorough understanding of the franchise agreement and potential competitive risks. Franchisees should consider asking Cicis about their strategic plans for acquisitions and mergers in relation to existing development areas.