When signing the Area Development Agreement, what related documents must be signed and delivered to Cicis simultaneously with the Franchise Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
te, you may not rely on our acceptance as a representation, promise, warranty, or guarantee that the Site will meet your own expectations or that your Restaurant will be profitable or otherwise successful, or for any other purpose whatsoever.
We will use our reasonable efforts to review and evaluate your proposed Sites within 30 days after we receive all requested information and materials. If we accept a proposed Site, you or your approved Affiliate must sign a separate Franchise Agreement for the Site within 15 days after we provide you with an execution copy of the Franchise Agreement, failing which, we may withdraw our acceptance.
E. EXECUTION OF FRANCHISE AGREEMENTS.
Simultaneously with signing this Agreement, you or an Affiliate we approve must sign and deliver to us a Franchise Agreement and related documents representing the first Franchise you are obligated to acquire under this Agreement. You or your approved Affiliate must thereafter open and operate a Restaurant according to the terms of that Franchise Agreement. Thereafter, once we have accepted a Site, and prior to signing a lease or to otherwi
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, when signing the Area Development Agreement, the franchisee or an approved affiliate must simultaneously sign and deliver a Franchise Agreement and related documents to Cicis. This Franchise Agreement represents the first franchise the franchisee is obligated to acquire under the Area Development Agreement. The franchisee must then open and operate a restaurant according to the terms of that initial Franchise Agreement.
Subsequent to the initial agreement, once Cicis accepts a site for a new location, the franchisee or an approved affiliate must sign Cicis' then-current form of Franchise Agreement and related documents before signing a lease or securing possession of the site. The terms of these subsequent Franchise Agreements may differ substantially from the initial agreement. However, the royalty rate will not exceed 5% of Gross Sales for Cicis Buffet Restaurants or 6% of Gross Sales for Cicis To Go Restaurants, and the Initial Franchise Fee will be $30,000 for Cicis Buffet Restaurant or $15,000 for Cicis To Go Restaurants.
Each Franchise Agreement governs the development and operation of the restaurant at the specific site identified in the agreement. This ensures that each location is bound by its own set of terms and conditions, even within the broader Area Development Agreement. This process allows Cicis to maintain control over the standards and operations of each individual franchise while enabling area developers to expand their footprint.