What are the restrictions on direct and indirect owners and the Operator regarding diverting business from the Cicis Restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of the Franchise Agreement, neither your direct and indirect owners and Operator (and members of their immediate family) shall (i) divert, or attempt to divert, any business or customer of your Cicis Restaurant to any competitor, by direct or indirect inducement or otherwise; (ii) except with respect to other 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 (iii) 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.
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.
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 Cicis's 2025 Franchise Disclosure Document, direct and indirect owners and the Operator are restricted from diverting business away from the Cicis restaurant. During the term of the Franchise Agreement, these individuals, including members of their immediate family, cannot divert or attempt to divert any business or customer to any competitor, either directly or indirectly. They are also prohibited from owning, operating, or having any financial interest in any Competing Business, which is defined as a business deriving more than 50% of its revenue from selling pizza using authorized distribution methods. This restriction applies worldwide, except for other restaurants operated under valid franchise agreements with Cicis. Additionally, they cannot interfere with Cicis's relationships with its suppliers or perform any act that could harm the goodwill associated with the Cicis brand and system.
Following the termination or expiration of the Franchise Agreement, a similar set of restrictions applies for a continuous period of two years. During this time, neither the franchisee nor their owners, Operator, or immediate family members can engage in a Competing Business at the location of the former Cicis restaurant, within the Protected Area, or within a 10-mile radius of the restaurant's location, the Protected Area, the Development Area (if applicable), or any other Cicis-branded food service facility.
These restrictions are designed to protect Cicis's market share and brand integrity by preventing franchisees and related parties from using their knowledge and experience gained from operating a Cicis restaurant to benefit a competing business. The restrictions extend beyond the term of the franchise agreement to further safeguard Cicis's interests. A prospective franchisee should carefully consider these limitations and how they might impact their future business endeavors before investing in a Cicis franchise.