Does the post-term non-compete for Cicis extend to areas within a 10-mile radius of any Cicis restaurant under construction?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) for a continuous uninterrupted period commencing upon the expiration or termination of, or a Transfer (defined below) described in, this Agreement and continuing for two (2) years thereafter, except as we otherwise approve in writing, neither you nor any of your Owners and Operator (and members of their immediate family) will, directly or indirectly, for yourselves, or through, on behalf of, or in conjunction with any other Person, by direct inducement or otherwise, engage in any activities described in Section 9.C(1) above in respect of any Competing Business:
- (a) at the Location; or
- (b) within the Protected Area; or
- (c) if this Agreement is executed pursuant to a development agreement, within the development area described therein; or
- (d) within a 10-mile radius of (i) the Location, (ii) the Protected Area, (iii) the development area, if applicable, or (iv) any Cicis Restaurant or other Cicis-branded food service facility in existence or under construction as of the date of this Agreement or at the commencement of the obligation described in this Section 9.C(2).
If any person restricted by this Section 9C(2) fails to comply with the foregoing obligations as of the date of expiration, termination, or Transfer, the 2-year restricted period for that person will commence on the date the person begins to comply 9C(2), which may be the date a court order is entered enforcing this provision.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the post-term non-compete agreement does extend to areas within a 10-mile radius of any Cicis restaurant under construction. Specifically, for a period of two years after the termination or expiration of the franchise agreement, the franchisee and their owners/operators are restricted from engaging in any competing business activities.
This restriction applies not only to the franchisee's location and protected area but also to a broader scope. The non-compete extends to a 10-mile radius of the franchisee's location, the protected area, the development area (if applicable), and any Cicis Restaurant or other Cicis-branded food service facility in existence or under construction as of the date of the agreement or at the commencement of the obligation.
This means that a franchisee is significantly limited in their ability to operate or be involved with a competing business within that 10-mile radius, even if a Cicis restaurant is merely under construction. The restriction aims to protect Cicis's market and goodwill by preventing former franchisees from leveraging their knowledge of the Cicis system to compete against existing or planned Cicis locations. The FDD states that if the franchisee fails to comply with the non-compete obligations, the two-year restricted period will commence on the date the person begins to comply.