What is the role of the 'Operator' in a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as may otherwise be provided in this Agreement, the Managing Owner's interest in you will be and will remain free of any pledge, mortgage, hypothecation, lien, charge, encumbrance, voting agreement, proxy, security interest, or purchase right or options.
- (2) In addition to exercising general supervisory responsibility for your activities under this Agreement, the Managing Owner shall directly oversee your Restaurant's operations, unless you designate another natural person whom we approve to serve as your "Operator".
Your initial Operator, if applicable, is identified on Attachment A.
An Operator may, but need not, be an owner and will be responsible for overseeing your Restaurant's operations.
- (3) Your Managing Owner and/or Operator must be approved by us, as we determine in our sole discretion.
Once approved, your Managing Owner and Operator must, during the entire period they serve in such capacities, continue to meet our qualifications and such other standards as may be set forth in the Manuals or otherwise conveyed to you in writing.
Your Managing Owner and the initial Operator must successfully complete our initial training program (the duration and scope of which may vary, depending upon such person's prior restaurant operating experience) within a reasonable period of time after the execution of this Agreement and prior to the Opening Date.
If your Managing Owner or Operator fails, in our sole judgment, to satisfactorily complete such program, then we will give you an opportunity to designate a new Managing Owner and/or Operator, who must be approved by us.
If such newly designated Managing Owner or Operator fails to complete the initial training program to our satisfaction prior to the scheduled Opening Date, we may terminate this Agreement in accordance with Section 15.A.(2)(e).
- (4) You must vest the Managing Owner and any Operator with sufficient decision-making authority to expedite the determinations and decisions that are essential to effective and efficient operation of your Restaurant.
Your Operator (and your Managing Owner if your Managing Owner is your Operator) must devote his or her full-time best efforts to the supervision of your Restaurant's operation and, with our consent, to the supervision of other Cicis Restaurants owned by you or your affiliate(s) and operated pursuant to franchise agreement(s) with us.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Operator is a key role in overseeing the restaurant's operations. The franchisee can designate a natural person, who Cicis approves, to serve as the Operator. The Operator does not necessarily need to be an owner of the franchise. Attachment A of the Franchise Agreement identifies the initial Operator, if applicable.
The Operator is responsible for overseeing the restaurant's daily operations. The Managing Owner of the franchise must directly oversee the restaurant's operations unless an Operator is designated. Cicis must approve the Managing Owner and/or Operator, and these individuals must continue to meet Cicis's qualifications and standards throughout their service.
The Managing Owner and the initial Operator are required to successfully complete Cicis's initial training program. If they fail to do so, Cicis may allow the franchisee to designate a new Managing Owner and/or Operator. Failure to complete the training program satisfactorily may lead to the termination of the Franchise Agreement. The franchisee must give the Operator sufficient decision-making authority to ensure the restaurant operates effectively and efficiently. The Operator (or the Managing Owner, if serving as the Operator) must devote their full-time efforts to supervising the restaurant's operation and, with Cicis's consent, may supervise other Cicis restaurants owned by the franchisee or its affiliates.