What is a Reserved Area according to the Cicis Franchise Agreement?

According to Cicis's 2025 Franchise Disclosure Document, a Reserved Area is defined within the context of territory rights. Specifically, it refers to locations where Cicis retains the right to establish and operate restaurants, even if those locations fall within or outside a franchisee's Protected Area. These Reserved Areas include any enclosed retail sales establishments exceeding 250,000 square feet, food courts, airports, hospitals, cafeterias, commissaries, schools, hotels, office buildings, stadiums, arenas, ballparks, festivals, fairs, military bases, and other mass gathering locations or events.

This definition has significant implications for prospective Cicis franchisees. Even if a franchisee secures a Protected Area, Cicis can still operate or authorize other Cicis restaurants within these Reserved Areas. This means a franchisee could face direct competition from another Cicis location within their general vicinity, impacting potential revenue. The broad scope of the definition, encompassing locations from airports to schools, suggests that many high-traffic areas could be considered Reserved Areas.

For a potential franchisee, understanding the implications of Reserved Areas is crucial during the site selection process. While a location might seem promising based on demographics and traffic, its proximity to a Reserved Area could diminish its potential. It would be prudent for prospective franchisees to discuss with Cicis the specific locations that are considered Reserved Areas in their target market to fully assess the competitive landscape. This information is vital for making an informed decision about investing in a Cicis franchise and predicting potential revenue.