After termination of the Cicis franchise agreement, what is a franchisee prohibited from doing regarding the Marks if they operate another business?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the expiration or termination of this Agreement, all rights granted to you hereunder will immediately terminate, and:
- B.
Cease Use of the Marks and Confidential Information.
You must immediately and permanently cease to use, in any manner whatsoever, and return to us (or, at our direction, destroy) any Confidential Information and cease to use the mark "Cicis" and all other Marks.
If you fail to promptly de-identify your Restaurant in accordance with our then-current System Standards, then we will have the right to cure deficiency, and you must reimburse us for all costs we incur in curing such deficiency.
- (c) interfere with our relationships with any supplier to Cicis Restaurants or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System; and
- (2) for a continuous uninterrupted period commencing upon the expiration or termination of, or a Transfer (defined below) described in, this Agreement and continuing for two (2) years thereafter, except as we otherwise approve in writing, neither you nor any of your Owners and Operator (and members of their immediate family) will, directly or indirectly, for yourselves, or through, on behalf of, or in conjunction with any other Person, by direct inducement or otherwise, engage in any activities described in Section 9.C(1) above in respect of any Competing Business:
- (a) at the Location; or
- (b) within the Protected Area; or
- (c) if this Agreement is executed pursuant to a development agreement, within the development area described therein; or
- (d) within a 10-mile radius of (i) the Location, (ii) the Protected Area, (iii) the development area, if applicable, or (iv) any Cicis Restaurant or other Cicis-branded food service facility in existence or under construction as of the date of this Agreement or at the commencement of the obligation described in this Section 9.C(2).
If any person restricted by this Section 9C(2) fails to comply with the foregoing obligations as of the date of expiration, termination, or Transfer, the 2-year restricted period for that person will commence on the date the person begins to comply 9C(2), which may be the date a court order is entered enforcing this provision.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, after the franchise agreement terminates, franchisees must immediately and permanently stop using the mark "Cicis" and all other Marks in any way. They must also return or destroy any confidential information. If the franchisee does not de-identify their restaurant according to Cicis' System Standards, Cicis has the right to correct the deficiency and charge the franchisee for all costs incurred.
Specifically, for two years after the agreement ends, unless Cicis approves otherwise in writing, the franchisee, their owners, and their immediate family cannot engage in activities that interfere with Cicis' relationships with suppliers or harm the goodwill associated with the Marks and the System. This restriction applies to any Competing Business at the original restaurant location, within the Protected Area, within the development area (if applicable), or within a 10-mile radius of these locations or any existing or under-construction Cicis restaurant or branded food service facility.
If a person restricted by this clause fails to comply with these obligations from the date of termination, the two-year restricted period will begin on the date they start complying. This may be the date a court order is entered to enforce the provision. This means that any delay in complying with the non-compete terms could extend the period during which the franchisee is restricted from operating a competing business.