What is the 'Term' during which the Development Rights for Cicis can be exercised?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the terms and limitations contained herein, we grant you the Development Rights. You accept and agree to exercise the Development Rights in strict accordance with the terms and conditions contained in this Agreement. You acknowledge and agree that, as described further in this Agreement:
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- the Development Rights may be exercised from the Effective Date and, unless this Agreement is sooner terminated as provided herein, continuing through the earlier of (1) the date on which the last Restaurant which is required to be opened in order to satisfy the Development Schedule opens for regular business or (2) the last day of the last Development Period of the Development Schedule (the "Term")
You agree to, at all times, faithfully, honestly and diligently perform your obligations under this Agreement and to fully exploit the Development Rights during the Term and throughout the entire Development Area. Except for having your Affiliates that we approve sign Franchise Agreements, you may not subcontract or delegate any of your rights or obligations under this Agreement to any third parties.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the period during which the Development Rights can be exercised, referred to as the "Term," begins on the Effective Date of the Development Agreement. Unless the agreement is terminated earlier, the Term continues until the earlier of two conditions: either the date when the last Restaurant required by the Development Schedule opens for regular business, or the last day of the final Development Period specified in the Development Schedule.
This means that a Cicis area developer has a defined window to fulfill their obligations to open a certain number of restaurants in their designated area. The end of this term is tied directly to their performance against the agreed-upon Development Schedule. If the developer opens all required restaurants ahead of schedule, the Term ends early. Conversely, failure to meet the milestones in the Development Schedule could lead to termination of the agreement, as detailed elsewhere in the FDD.
It is important for prospective Cicis developers to carefully review Attachment A of the Development Agreement, which contains the Development Area and Development Schedule. Understanding these timelines and obligations is crucial, as the Development Fee is earned by Cicis upon execution of the agreement, regardless of whether all restaurants are eventually opened. The developer is expected to diligently perform their obligations and fully exploit the Development Rights throughout the Term and the entire Development Area.