Under the Area Development Agreement, what is the defined geographic area called for Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Area Development Agreement, you will acquire franchises to develop, open and operate multiple Restaurants within a defined geographic area known as the "Development Area." We determine the size of the Development Area based on various market and economic factors, such as an evaluation of market demographics, the market penetration of similar businesses, the availability of appropriate sites, and the growth trends in the market. The size of the Development Area will depend on factors such as the numbers of Cicis Restaurants you undertake to open, demographics, and the existence of other Cicis Restaurants. The Development Area generally consists of a portion of a city, county or designated market area. Your Development Area will be described in the Area Development Agreement before you sign the Area Development Agreement. Under the Area Development Agreement we will, in accordance with our then-current System Standards, approve or reject your proposed locations for new Cicis Restaurants that you undertake to develop, and the Franchise Agreement for such Cicis Restaurants will set forth their Protected Area, if any, which we determine based on factors described above in this Item 12.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if you enter into an Area Development Agreement, the defined geographic area where you will develop, open, and operate multiple Cicis restaurants is called the "Development Area." Cicis determines the size of the Development Area based on factors such as market demographics, the market penetration of similar businesses, the availability of appropriate sites, and growth trends.
The size of the Development Area is also influenced by the number of Cicis restaurants you commit to opening, demographics, and the presence of existing Cicis restaurants. Typically, the Development Area consists of a portion of a city, county, or designated market area. The specific details of your Development Area will be outlined in the Area Development Agreement before you sign it.
It's important to note that while you get the right to develop within the Development Area, Cicis retains certain rights. Cicis can use and license the Cicis system in any business located anywhere in the world, own and operate other businesses (even competitive ones) anywhere in the world, and market and sell products through alternative channels of distribution within and outside the Development Area. Upon expiration or termination of the Area Development Agreement, Cicis is entitled to develop and operate restaurants within the former Development Area, except within the Protected Area granted to you under any effective Franchise Agreement.
Furthermore, Cicis will approve or reject your proposed locations for new Cicis restaurants within the Development Area, and the Franchise Agreement for each restaurant will define its Protected Area, if any. This Protected Area is determined based on similar market and economic factors as the Development Area.