What two things will be agreed upon before signing an Area Development Agreement for Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We also offer to certain qualified entities the right and obligation to acquire multiple franchises for the development and opening of Cicis Restaurants (the "Development Rights") within an agreed upon geographic territory (the "Development Area") and according to an agreed upon schedule (the "Development Schedule"). To acquire the Development Rights, you must sign our form of area development agreement and related agreements, the current forms of which are attached to this Disclosure Document as Exhibit C (the "Area Development Agreement"). You and we will agree on both the Development Area and the Development Schedule before signing, and each will be identified in, the Area Development Agreement. Our typical Area Development Agreement requires development of 2 or 3 Cicis Restaurants, with the final agreed upon number being reflected in the Area Development Agreement you sign. You will sign the Franchise Agreement for the 1st Cicis Restaurant when you sign the Area Development Agreement. For each subsequent Cicis Restaurant you commit to develop, you must sign our then-current form of
Franchise Agreement, which may be materially different than the form we were using when you signed the Area Development Agreement.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 6–8)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, before signing an Area Development Agreement, the prospective franchisee and Cicis will agree on two key elements: the Development Area and the Development Schedule. The Development Area refers to the specific geographic territory where the franchisee is granted the right to develop Cicis restaurants. The Development Schedule outlines the timeline within which the franchisee is obligated to open these restaurants.
This agreement is crucial because it sets the boundaries and expectations for both parties. Cicis defines the territory granted to the developer, preventing overlap or conflicts with other franchisees. The Development Schedule ensures that the franchisee is committed to a specific pace of expansion, aligning with Cicis's overall growth strategy. The Area Development Agreement will identify both the Development Area and the Development Schedule.
Typically, Cicis's Area Development Agreement requires the development of 2 or 3 restaurants, with the final number specified in the agreement. This commitment ensures that area developers are serious about expanding the Cicis brand within their designated territory. The franchisee must also sign the Franchise Agreement for the first Cicis restaurant when signing the Area Development Agreement. For each subsequent restaurant, the franchisee will sign the then-current form of the Franchise Agreement, which may differ from the original agreement.