What activities can the Cicis Marketing Fund be used to pay for?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) We may use the Fund to pay for any activities that we determine fall within the reasonable scope of the Fund's activities and responsibilities, including (a) to reimburse our and our affiliates' expenses in administering and operating the Fund (including a reasonable allocation of the salaries of our or our affiliates' employees who perform work for the Fund), (b) to pay for any and all costs of planning, maintaining, administering, directing, preparing, and placing marketing (including the costs of preparing and placing materials), traditional and non-traditional commercial development (including new restaurant development), and media placement, and (c) to pay for the costs of product innovation, guest research, product testing, and the development, licensing, maintenance and operation of technology tools (including internet websites, intranet, and applications) to facilitate the operation of the Fund, the conduct of any of its activities, and the customer experience.
(3) All Fund Contributions will be maintained in a separate account and will not be used to defray any of our general operating expenses except as described in Section 7.C(2) above.
We will prepare an unaudited annual statement of the operations of the Fund and make the most recent statement available to you, on your written request, within 120 days after our fiscal year end.
(4) We do not undertake any obligation to make expenditures for you which are equivalent or proportionate to your Fund Contribution or to ensure that any you or any other franchisee benefits directly or pro rata from the Fund's activities.
(5) Although the Fund is intended to be of perpetual duration, we may terminate the Fund.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, the Marketing Fund can be used for a variety of activities that Cicis determines fall within the reasonable scope of the Fund's activities and responsibilities. These activities are intended to promote Cicis Restaurants, the System, and the Marks generally, as well as to develop tools and technology to advance these objectives. Cicis has sole discretion to approve or disapprove the creative concepts, materials, media, vendors, and strategies used in connection with all programs and activities funded by the Marketing Fund.
The Marketing Fund may be used to reimburse Cicis' and its affiliates' expenses in administering and operating the Fund, including a reasonable allocation of employee salaries for work performed for the Fund. It can also cover the costs of planning, maintaining, administering, directing, and preparing marketing materials, as well as the placement of marketing efforts, including traditional and non-traditional commercial development and media placement.
Furthermore, the Fund can be used to pay for product innovation, guest research, product testing, and the development, licensing, maintenance, and operation of technology tools. These tools include internet websites, intranet, and applications designed to facilitate the operation of the Fund, the conduct of its activities, and the customer experience. All Fund contributions will be maintained in a separate account and will not be used to defray Cicis' general operating expenses, except as specifically described in the FDD. Cicis will prepare an unaudited annual statement of the operations of the Fund and make it available to franchisees upon written request within 120 days after the fiscal year end.
It is important to note that Cicis does not undertake any obligation to make expenditures for franchisees that are equivalent or proportionate to their Fund contributions, nor does it ensure that any franchisee benefits directly or pro rata from the Fund's activities. While the Fund is intended to be of perpetual duration, Cicis may terminate it, but only after all monies have been expended for marketing or promotional purposes or returned to contributors based on their respective contributions, without interest.