Does Cicis require written approval if a franchisee wants to engage in activities that would otherwise violate the non-competition covenants?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
thods and techniques and those of the System. You acknowledge that (i) such specialized training and Confidential Information provide a competitive advantage and will be valuable to each of you in the development and operation of your Restaurant, and (ii) gaining access to such specialized training and Confidential Information is, therefore, a primary reason for entering into this Agreement. In consideration for such specialized training, Confidential Information and rights, you agree that:
(1) during the Term, except as we otherwise approve in writing, neither you nor any of your Owners and Operator (and members of their immediate family) will, either directly or indirectly, anywhere in the world, for yourself or themselves or through, on behalf of, or in conjunction with any other Person:
- (a) divert, or attempt to divert, any business or customer of your Restaurant to any competitor, by direct or indirect inducement or otherwise;
- (b) except with respect to other Cicis Restaurants operated under valid franchise agreements with us, own, maintain, operate, engage in, be employed by, or have any financial or beneficial interest in, advise, assist, aid, make loans to, act as landlord to, or otherwise support, anywhere in the world, any Competing Business (defined below); or
(c) interfere with our relationships with any supplier to Cicis Restaurants or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis requires written approval for a franchisee, their owners, and operators to engage in activities that would otherwise violate the non-competition covenants, both during the term of the agreement and for a period after the agreement expires or is terminated. Specifically, during the term, franchisees and related parties cannot engage in any Competing Business without Cicis's written approval.
Following the expiration, termination, or transfer of the franchise agreement, a similar restriction applies for two years. During this period, franchisees and related parties are prohibited from engaging in activities related to a Competing Business at the restaurant's location, within the protected area, within a development area (if applicable), or within a 10-mile radius of the location, protected area, development area, or any existing or under-construction Cicis restaurant. Again, this is unless Cicis provides written approval to do so.
This requirement for written approval ensures that Cicis maintains control over potential conflicts of interest and protects its brand and market position. For a prospective franchisee, this means they must seek and obtain written permission from Cicis if they wish to engage in any business activities that could be seen as competitive, both during their franchise term and for two years after, within the specified geographic areas. Failure to obtain this approval could result in a breach of the franchise agreement and potential legal consequences.