factual

Under what condition will Cicis and its affiliates not establish or authorize another person to establish a Cicis Restaurant within the Protected Area?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (3) We agree that, except as provided in this Agreement and subject to your full compliance with this Agreement and any other agreement between you or your affiliates and us or our affiliates, we and our affiliates will not, during the Term, establish, or authorize any Person other than you to establish, a Cicis Restaurant identified by the Marks within the area identified on Attachment A or Attachment A-1, as applicable (the "Protected Area").

Source: Item 22 — CONTRACTS (FDD pages 64–65)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, Cicis and its affiliates will not establish or authorize another person to establish a Cicis Restaurant identified by the Marks within the franchisee's Protected Area during the term of the agreement. This is dependent on the franchisee's full compliance with the Franchise Agreement and any other agreements between the franchisee (or their affiliates) and Cicis (or its affiliates). The Protected Area is the area identified on Attachment A or A-1 of the Franchise Agreement.

However, this exclusivity is subject to exceptions. Cicis retains rights within and outside the Protected Area that are not expressly and exclusively granted to the franchisee. Cicis has the right to establish and operate Cicis Restaurants outside the Protected Area, including adjacent or proximate locations. They can also establish Cicis Restaurants in any Reserved Area, whether within or outside the Protected Area. Reserved Areas include large retail establishments exceeding 250,000 square feet, food courts, airports, hospitals, and other mass gathering locations.

Furthermore, Cicis can operate restaurants under other trade names within or outside the Protected Area, establish Cicis To Go Restaurants anywhere, and offer similar or dissimilar products/services through other channels like Cicis To Go Restaurants or the Internet. Cicis can also engage in transactions with other businesses, even within the Protected Area, and potentially convert them to the Cicis brand or allow them to incorporate elements of the Cicis system while operating under another name. These stipulations significantly limit the franchisee's exclusive rights and highlight the importance of carefully reviewing the definition and scope of the Protected Area in the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.