Can Cicis solicit customers and advertise within the Development Area?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, we reserve for ourselves and our affiliates all rights not expressly granted to you in the Area Development Agreement without any obligation to compensate you, including the right to do and to authorize others to do the following: (i) use and license others to use the System and any elements of the System in any business located or operated anywhere in the world; (ii) own and operate, and license others to own and operate, or otherwise become associated with, any business, anywhere in the world, that uses or is identified by any names, symbols or trademarks, except, as described above, in a restaurant that is located in the Development Area and is identified by the Marks; (iii) acquire, be acquired by, merge, 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 Development Area, (a) convert the other businesses to the Cicis brand, (b) allow such other businesses to operate as part of the System, whether or not converted to the Cicis, and/or (c) permit the other businesses to continue to operate under another name; (iv) solicit customers, advertise, and authorize others to advertise, and promote sales of and from Restaurants, and fill customer orders by providing catering and delivery services anywhere, including within the Development Area; and (v) market and sell, and grant to others the right to market and sell, within and outside of the Development Area, products and services authorized for sale at Restaurants through alternative channels of distribution such as Internet, catalog sales, telemarketing, grocery stores, kiosks, mail order, or through Cicis To Go) using the Marks or other trademarks and commercial symbols.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis retains the right to solicit customers and advertise within a franchisee's Development Area. Specifically, Cicis can authorize others to advertise and promote sales from restaurants, as well as fulfill customer orders through catering and delivery services, even within the Development Area designated to a franchisee. This means that while a franchisee is developing their territory, Cicis can still market and sell within that same area.
This reservation of rights extends to various channels, including catering and delivery services. Cicis also retains the right to market and sell products and services authorized for sale at Restaurants through alternative channels of distribution such as Internet, catalog sales, telemarketing, grocery stores, kiosks, mail order, or through Cicis To Go. These activities can occur both within and outside the Development Area, potentially creating competition for the franchisee within their own territory.
This aspect of the agreement highlights a potential risk for Cicis franchisees. While franchisees are granted a Development Area to build their business, Cicis maintains significant control over marketing and sales activities within that area. Prospective franchisees should carefully consider how Cicis's retained rights might impact their ability to attract and retain customers within their Development Area. It is important to discuss with Cicis how they plan to manage these activities to minimize potential conflicts and ensure a supportive environment for franchisee growth.