What are the post-termination restrictions on operating a Competing Business after the Cicis Franchise Agreement expires?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ny other act injurious or prejudicial to the goodwill associated with the Marks and the System.
A "Competing Business" is a business that (i) derives more than 50% of its revenue from selling pizza (including fresh, frozen, or unbaked pizza) using the distribution methods (including dinein, carry-out, catering, or delivery) we authorize, (ii) functions as a commissary to sell or lease to or supply any such business, or (iii) grants franchises or licenses for or provides services to any of the foregoing.
For a continuous uninterrupted period 2 years after the termination or expiration of the Franchise Agreement, neither you nor any of your Owners and Operator (and members of their immediate family) will, directly or indirectly, engage in Competing Business (i) at the location of your Cicis Restaurant; (ii) within the Protected Area; (iii) if this Agreement is executed pursuant to a development agreement, within the development area described therein; or (iii) within a 10-mile radius of (a) the location of your Cicis Restaurant, (b) the Protected Area, (c) the Development Area, if applicable, or (iv) any Cicis-branded food service facility.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
Under the Area Development Agreement, you are not authorized to sell anything. Under the Franchise Agreement, you agree that you will: (1) offer and sell from your Cicis Restaurant all of the products and services that we specify at our discretion;
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, there are post-termination restrictions regarding operating a competing business. A "Competing Business" is defined as a business deriving more than 50% of its revenue from pizza sales through authorized distribution methods, functioning as a commissary to such businesses, or franchising/licensing similar businesses.
For a period of two years following the termination or expiration of the Franchise Agreement, the franchisee, their owners, operator, and immediate family members are restricted from engaging in a Competing Business. This restriction applies to the location of the former Cicis restaurant, within the Protected Area, and, if applicable, within the development area described in a development agreement. Additionally, the restriction extends to a 10-mile radius of the former Cicis restaurant location, the Protected Area, the Development Area (if applicable), or any Cicis-branded food service facility.
The FDD states that if any person fails to comply with the non-compete obligations upon expiration, termination, or transfer, the 2-year restricted period will commence on the date the person begins to comply with the obligations. This may be the date a court order is entered enforcing the provision. This clause ensures that Cicis can protect its market and brand integrity by preventing former franchisees from immediately leveraging their experience to compete against the Cicis system in close proximity to their previous location.