What agreement outlines the requirement to develop at least five Cicis Pizza Restaurants?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
On Smile LLC ("we") and the "Developer" identified below ("you" and, together with us, the "Parties") execute this Development Incentive Program Addendum (the "Addendum") to supplement and amend that certain Area Development Agreement they have executed immediately prior to the execution of this Addendum (as it might have otherwise been amended, the "Development Agreement"). The "Effective Date" of this Addendum is the Effective Date of the Development Agreement. Capitalized terms used but not defined in this Addendum have the meanings given them in the Development Agreement. For valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
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- Approval to Participate in Development Incentive Program. In the Development Agreement, you have agreed to develop or cause your affiliates to develop, in each case pursuant to individual Franchise Agreements, at least five (5) Cicis Pizza Restaurants. In light of your acquisition of the Development Rights and your agreement to remain in good standing (as defined below), we have agreed to allow you to participate in our Development Incentive Program (the "Program") with respect to the Development Agreement and Franchise Agreements that you or your affiliates execute pursuant to the Development Agreement from and after the Effective Date of this Addendum (the "Qualifying Franchise Agreements"). We may revoke your participation in the Program if, at any time, we determine that you no longer qualify to participate.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Development Incentive Program Addendum, which supplements and amends the Area Development Agreement, specifies the requirement for a developer to establish a minimum of five Cicis Pizza Restaurants. This addendum, executed between On Smile LLC (referred to as "we") and the developer (referred to as "you"), outlines the terms and conditions related to the Development Incentive Program.
The Development Incentive Program Addendum states that the developer has agreed to develop at least five Cicis Pizza Restaurants under individual Franchise Agreements. In return for acquiring the Development Rights and maintaining good standing, Cicis agrees to allow the developer to participate in the Development Incentive Program. Cicis retains the right to revoke participation in the program if the developer no longer meets the qualification standards.
This agreement is significant for prospective Cicis developers as it formalizes the commitment to develop a specific number of restaurants and outlines the incentives associated with meeting this obligation. The addendum also highlights the importance of remaining in good standing with Cicis to maintain eligibility for the program. The Development Incentive Program Addendum is an integral part of the Area Development Agreement, further solidifying the relationship and expectations between Cicis and the developer.