Who is responsible for all expenses related to constructing, developing, equipping, and opening a Cicis Restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
reto, during the Term (defined below), at the Location (defined below), and strictly and solely in accordance with this Agreement. Your right and obligation to develop, own and operate a Cicis Restaurant is referred to herein as the "Franchise," and the Cicis Restaurant you develop and own under this Agreement is referred to herein as your "Restaurant."
B. Location; Protected Area and Reserved Rights.
(1) Your Restaurant may be developed and operated only at a location upon which you and we agree, in writing (the "Location"). If you and we have agreed upon the Location when this Agreement is executed, it is identified on Attachment A hereto. If you and we have not yet agreed upon the Location, it is your responsibility to secure our agreement as to your Location within 120 days following the Effective Date. You must, at your expense, find and propose to us a location within the geographic area described on Attachment A ("Designated Area") that you believe meets our then-current site criteria and to submit any information about the location that we request in order to assess your proposal. We may, but will not be required to, conduct an on-site inspection of your proposed location. Should we elect to do so, we will not charge you a fee for conducting the inspection, but you must reimburse all costs and expenses we incur in connection with the
inspection. If you choose to continue to pursue a proposed location and we determine that it is appropriate to conduct another on-site inspection, we reserve the right to charge a fee for, and you will reimburse us the costs and expenses associated with, each such inspection.
- (2) If you and we agree after the Effective Date that your proposed location will be the Location, you and we will identify it on Attachment A-1 hereto and will indicate on that attachment (a) whether your Restaurant will be operated as a Cicis Buffet Restaurant or as a Cicis To Go Restaurant, and (b) your Restaurant's Protected Area (defined below). You must sign and deliver to us Attachment A-1 within five (5) days of its delivery to you, failing which, we may revoke our acceptance of the proposed location. If you and we are unable to agree upon the proposed location, the type of Cicis Restaurant that will be developed, and the Protected Area, you must locate and propose to us a different location within the Designated Area. This Agreement does not grant you any exclusivity with respect to the Designated Area. Our willingness to agree to your proposed Location means only that it meets the criteria that we have established solely for our own purposes, which may be different than your own. Even if we have suggested or assisted you in finding the Location, you may not rely upon our agreement regarding the Location as our representation, promise, warranty, or guarantee that your Restaurant will be profitable or otherwise successful, that the Location satisfies your own requirements, or for any other purpose whatsoever.
- (3) We agree that, except as provided in this Agreement and subject to your full compliance with this Agreement and any other agreement between you or your affiliates and us or our affiliates, we and our affiliates will not, during the Term, establish, or authorize any Person other than you to establish, a Cicis Restaurant identified by the Marks within the area identified on Attachment A or Attachment A-1, as applicable (the "Protected Area").
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the franchisee is generally responsible for all expenses related to constructing, developing, equipping, and opening their Cicis restaurant. The franchisee bears the costs associated with finding a suitable location that meets Cicis's criteria, including submitting location information for approval. If Cicis conducts an on-site inspection of the proposed location, the franchisee must reimburse Cicis for all costs and expenses incurred during the inspection. If additional inspections are deemed necessary, Cicis reserves the right to charge a fee for each subsequent inspection, which the franchisee will also be responsible for reimbursing.
In addition to location-related expenses, the franchisee is responsible for expenses related to training programs, including travel, lodging, meals, and wages for themselves and their personnel. The franchisee is also responsible for purchasing, installing, and maintaining the point of sale and computer systems, along with any other required hardware and software, from designated suppliers. Furthermore, the franchisee is obligated to participate in marketing and sales promotion programs, including grand opening promotions, at their own expense.
The franchise agreement emphasizes that the franchisee is responsible for managing employment functions, including recruiting, hiring, training, and compensating employees, in compliance with all applicable laws. The franchisee must also maintain the restaurant in good condition and make improvements to meet Cicis's System Standards. Overall, the financial burden of establishing and operating a Cicis restaurant primarily falls on the franchisee, highlighting the importance of careful financial planning and due diligence before entering into the franchise agreement.