Is Cicis required to approve the Managing Owner and/or Operator?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
your affiliate) and us and the same as the Managing Owner designated under any such Development Agreement. The Managing Owner must own and maintain at least 25% of the direct ownership interests in you. Except as may otherwise be provided in this Agreement, the Managing Owner's interest in you will be and will remain free of any pledge, mortgage, hypothecation, lien, charge, encumbrance, voting agreement, proxy, security interest, or purchase right or options.
- (2) In addition to exercising general supervisory responsibility for your activities under this Agreement, the Managing Owner shall directly oversee your Restaurant's operations, unless you designate another natural person whom we approve to serve as your "Operator". Your initial Operator, if applicable, is identified on Attachment A. An Operator may, but need not, be an owner and will be responsible for overseeing your Restaurant's operations.
- (3) Your Managing Owner and/or Operator must be approved by us, as we determine in our sole discretion. Once approved, your Managing Owner and Operator must, during the entire period they serve in such capacities, continue to meet our qualifications and such other standards as may be set forth in the Manuals or otherwise conveyed to you in writing. Your Managing Owner and the initial Operator must successfully complete our initial training program (the duration and scope of which may vary, depending upon such person's prior restaurant operating experience) within a reasonable period of time after the execution of this Agreement and prior to the Opening Date. If your Managing Owner or Operator fails, in our sole judgment, to satisfactorily complete such program, then we will give you an opportunity to designate a new Managing Owner and/or Operator, who must be approved by us. If such newly designated Managing Owner or Operator fails to complete the initial training program to our satisfaction prior to the scheduled Opening Date, we may terminate this Agreement in accordance with Section 15.A.(2)(e).
- (4) You must vest the Managing Owner and any Operator with sufficient decision-making authority to expedite the determinations and decisions that are essential to effective and efficient operation of your Restaurant. Your Operator (and your Managing Owner if your Managing Owner is your Operator) must devote his or her full-time best efforts to the supervision of your Restaurant's operation and, with our consent, to the supervision of other Cicis Restaurants owned by you or your affiliate(s) and operated pursuant to franchise agreement(s) with us. Neither the Managing Owner nor the Operator will engage in any other business or activity that may conflict with your obligations under this Agreement or any other agreement with us or our affiliates.
- (5) You must, at all times, keep us informed as to the identity of the persons serving as your Managing Owner and your Operator. If your relationship with the Managing Owner terminates or
materially changes, you must promptly designate a qualified replacement and must notify us within five (5) business days of any change. Any successor or replacement Managing Owner and Operator must complete our initial training program within a reasonable period of time after his or her appointment. If we, in our sole judgment, determine that your Restaurant is not supervised by a properly trained and qualified Managing Owner and/or Operator, we will notify you, and you must take appropriate corrective measures within a reasonable period of time, not to exceed 60 days from the date of the notice.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis requires approval of both the Managing Owner and the Operator. The Managing Owner has primary responsibility for supervising activities under the Franchise Agreement. The Operator is responsible for overseeing the restaurant's operations and may or may not be an owner.
Cicis maintains sole discretion over the approval of the Managing Owner and/or Operator. Once approved, these individuals must continue to meet Cicis's qualifications and standards throughout their tenure. Both the Managing Owner and the initial Operator must also successfully complete Cicis's initial training program, the duration and scope of which may vary based on prior restaurant operating experience, within a reasonable timeframe after the Franchise Agreement is executed and before the restaurant's opening date. Failure to satisfactorily complete the training program, in Cicis's judgment, provides an opportunity for the franchisee to designate a new Managing Owner and/or Operator, who must also be approved by Cicis.
The franchisee must vest the Managing Owner and any Operator with sufficient decision-making authority to expedite essential determinations for the restaurant's effective operation. The Operator (and the Managing Owner, if serving as the Operator) must dedicate their full-time efforts to supervising the restaurant's operation and, with Cicis's consent, potentially supervise other Cicis restaurants owned by the franchisee or its affiliates. The franchisee must keep Cicis informed of the identities of the Managing Owner and Operator at all times. If the relationship with either terminates or materially changes, the franchisee must promptly designate a qualified replacement and notify Cicis within five business days. Any successor must complete the initial training program within a reasonable time after appointment.
If Cicis determines that the restaurant is not supervised by a properly trained and qualified Managing Owner and/or Operator, Cicis will notify the franchisee, who must take corrective measures within 60 days. During this period, the franchisee must provide interim supervision approved in writing by Cicis. These stipulations ensure that Cicis maintains consistent brand standards and operational quality across all franchise locations.