Under the Cicis Development Rights agreement, can the developer subcontract or delegate their rights or obligations to third parties?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a developer with Development Rights is generally prohibited from subcontracting or delegating their responsibilities to other parties. The only exception to this rule is that Cicis may approve the developer's Affiliates to sign Franchise Agreements.
This restriction means that the individual or entity initially granted the Development Rights must directly manage and fulfill the obligations outlined in the Development Agreement. This includes adhering to the development schedule, finding suitable restaurant sites, and meeting reporting requirements. Cicis maintains control over who is executing the Development Rights, ensuring that the brand standards and development plans are upheld by an approved party.
This clause protects Cicis by ensuring the developer remains committed and accountable for fulfilling the development schedule and maintaining brand standards within the designated area. A prospective developer should carefully consider their capacity to meet these obligations personally, as subcontracting or delegating is not permitted without express approval for Affiliates signing Franchise Agreements.