What section of the Cicis Franchise Agreement covers the franchisee's obligations regarding restaurant operations?
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)
Based on the 2025 Franchise Disclosure Document, Section 5.D of the Cicis Franchise Agreement, as detailed in Item 22, covers the franchisee's obligations regarding restaurant operations. This section emphasizes the importance of a Managing Owner and/or Operator who is approved by Cicis. The Managing Owner generally oversees the franchisee's activities, while the Operator is responsible for overseeing the Restaurant's operations. The initial Operator is identified on Attachment A of the Franchise Agreement.
Both the Managing Owner and the Operator must meet Cicis's qualifications and standards, which are outlined in the manuals or conveyed in writing. They are also required to successfully complete Cicis's initial training program before the restaurant's opening. The duration and scope of this training may vary based on their prior restaurant operating experience. If either the Managing Owner or Operator fails to complete the training program satisfactorily, Cicis will allow the franchisee to designate a new Managing Owner and/or Operator.
The franchisee must give the Managing Owner and any Operator sufficient decision-making authority to ensure the effective and efficient operation of the Restaurant. The Operator (or the Managing Owner, if they are also the Operator) must dedicate their full-time efforts to supervising the Restaurant's operation. With Cicis's consent, they may also supervise other Cicis Restaurants owned by the franchisee or their affiliates under separate franchise agreements.