Does Cicis retain rights within my Protected Area?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have and retain all rights within and outside the Protected Area that are not expressly and exclusively granted to you under the Franchise Agreement, without any obligation to compensate you and without regard to whether it competes with your Cicis Restaurant, including the right to do and to authorize others to do the following: (i) establish and operate Cicis Restaurants identified by the Marks at any location outside the Protected Area, including locations that are adjacent or proximate to the Protected Area and in any Reserved Area (defined below) whether within or outside the Protected Area, (ii) establish and operate restaurants under other trade names, service marks, and trademarks at any location within or outside of the Protected Area, (iii) establish and operate Cicis To Go Restaurants anywhere in world, including within the Protected Area, (iv) offer and sell, anywhere in the world (including within the Protected Area) any similar or dissimilar products and services, whether identified by the Marks or by other trademarks, trade names or service marks, through any channel or by any method of distribution other than a full-service Cicis Restaurant (including by or through a Cicis To Go Restaurant, the Internet or similar electronic, virtual, or digital medium), on any terms and conditions we deem appropriate, and (v) acquire, be acquired by, merge with, affiliate with or engage in any transaction with other businesses (whether competitive or not) located anywhere and, even if such businesses are located in the Protected Area, (x) convert the other businesses to the Cici's brand and allow them to operate as part of the System, and/or (y) permit the other businesses to continue to operate under another name and incorporate one or more elements of the System.
A "Reserved Area" is any enclosed area of retail sales establishments in excess of 250,000 square feet, food courts, airports, hospitals, cafeterias, commissaries, schools, hotels, office buildings and stadiums, arenas, ballparks, festivals, fairs, military bases and other mass gathering locations or events.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis retains significant rights within and outside a franchisee's Protected Area. While a franchisee is granted the right to operate a Cicis Restaurant at a specific location within a Designated Area, Cicis maintains control over various aspects of the business and territory.
Specifically, Cicis reserves the right to establish and operate Cicis Restaurants outside the Protected Area, including adjacent or proximate locations, and in any Reserved Area, which includes large retail establishments exceeding 250,000 square feet, food courts, airports, and other mass gathering locations. Cicis can also operate restaurants under different brand names within or outside the Protected Area. Furthermore, Cicis retains the right to establish and operate Cicis To Go Restaurants anywhere in the world, including within the Protected Area, and to sell any products or services through alternative channels like the Internet, regardless of location.
This reservation of rights means that a Cicis franchisee's Protected Area is not entirely exclusive. Cicis can compete through other channels and brands, which could impact the franchisee's potential customer base and revenue. Prospective franchisees should carefully consider these limitations and evaluate the potential impact of Cicis's retained rights on their investment before signing the Franchise Agreement. Understanding the scope of these retained rights is crucial for assessing the true exclusivity and potential profitability of a Cicis franchise.