Do I have a right of first refusal to acquire additional Cicis franchises?

According to Cicis's 2025 Franchise Disclosure Document, franchisees do not have a right of first refusal to acquire additional franchises or establish additional restaurants. This means that Cicis is not obligated to offer existing franchisees the first opportunity to open new locations in a specific area. Cicis retains the discretion to grant franchises to new franchisees or operate company-owned stores in any location, even if it is near an existing franchisee's location. This policy applies both under the standard Franchise Agreement and the Area Development Agreement.

This lack of right of first refusal can create competition between franchisees and the franchisor. Cicis and its affiliates retain all rights within and outside the Protected Area that are not expressly and exclusively granted to the franchisee. They can establish 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. 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.

For prospective franchisees, this means that while you will have a Protected Area, Cicis can still develop other restaurants outside of this area, even nearby. This could impact your potential customer base and revenue. It is important to consider the potential for competition from other Cicis locations when evaluating the franchise opportunity. This is a fairly common practice in the franchise industry, as franchisors often want the flexibility to expand their brand's presence in a market without being restricted by existing franchisees' expansion plans.

Furthermore, Cicis reserves the right to market and sell products and services through alternative channels of distribution, such as the Internet, catalog sales, telemarketing, grocery stores, kiosks, mail order, or through Cicis To Go, using the Marks or other trademarks and commercial symbols, both within and outside the Development Area. This broad reservation of rights allows Cicis to explore various avenues for revenue generation without being limited by the franchisee's exclusive rights, potentially impacting the franchisee's sales and market share.