What agreement sections and addenda outline the fee obligations for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 6 OTHER FEES*
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 5% of Net Sales for a Cicis Buffet Restaurant; 6% of Net Sales for a Cicis To Go Restaurant (subject to reduction for participation in current incentive programs). | The day of the week we specify (currently, Thursday) | See Notes 2, 3, 4, and 5 |
| Non-Compliance Fee | $250 per failure to comply with the Franchise Agreement, plus, your royalty fee will increase by one (1) percentage point until you have cured all deficiencies | On demand, the day after non- compliance occurs | Payable only if you are in default of your obligations under the Franchise Agreement. |
| Technology and Support Fee | $100 per month | When billed (currently, first day of the month) | The Technology and Support Fee is in addition to all direct out-of-pocket costs you must otherwise incur under the terms of the Franchise Agreement or the Manual to acquire and maintain the required computer system and technology. |
| Type of Fee(1) | Amount | Due Date | Remarks |
| --- | --- | --- | --- |
| Cost of Updating Cicis Approved POS System | $1,200 annually | When billed | Your total cost of updating Cicis Approved POS System will be approximately $3,000 to $4,800, annually, of which $1,200 shall be payable to us or our affiliates |
| Type of Fee(1) | Amount | Due Date | Remarks |
| ---------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| On- Site Opening Assistance | Estimated to be in the range of $800 to $3,025 (depending on the number of representatives we send to your Cicis Restaurant, the number of days during which we provide on-site opening assistance, and the location of your Cicis Restaurant) | When billed | We do not require you to reimburse us for the cost of providing on-site opening assistance for your and/or your affiliates' first or second Cicis Restaurant. However, for your and/or your affiliates' third or subsequent Cicis Restaurant, we may require you to pay or reimburse us for the expenses we incur to provide such assistance. |
| Interest | 5% per month or the maximum rate allowed by applicable law, whichever is less | On demand | We may charge you interest on all overdue amounts under both the Franchise Agreement between you and us (or our affiliates). |
| Training for Replacement or Successor Personnel | Up to $2,500 per replacement personnel | If applicable, before training | We have the right to charge a reasonable fee to train any replacement or successor Managing Owner (as defined in Item 15) or Operator (as defined in Item 15), which currently is $2,500 per person. If our trainers have to travel to provide the training, you must also pay for our trainers' airfare, plus other travel-related expenses we incur. |
| Additional & Remedial Training | We have the right to charge a fee for additional training, not to exceed $250 per day for each day of training that we determine is necessary. | Before training or when billed, at our discretion | Your Managing Owner, Operator, Managers, and other personnel we designate may have to attend additional training programs. Also, if you ask, or if we believe it is appropriate, we will (subject to availability) provide trained representatives to conduct on-site remedial training at your location. If our trainers have to travel to provide the training, you must also pay for our trainers' airfare, plus other travel-related expenses we incur. |
| Transfer Fee – Franchise Agreement | $7,500, plus our expenses, which we estimate to be between $500 - $1,000 | Submitted with transfer application or, in our discretion, |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–31)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, several sections outline the fee obligations for franchisees. Attachment A-1 to the Franchise Agreement, specifically Section 4, addresses fees. Additionally, Item 6 details other fees, including the royalty fee, which is 5% of Net Sales for a Cicis Buffet Restaurant and 6% for a Cicis To Go Restaurant. This royalty fee is subject to reduction for participation in current incentive programs.
Item 6 also lists a non-compliance fee of $250 per failure to comply with the Franchise Agreement. If non-compliance occurs, the royalty fee will increase by one percentage point until all deficiencies are corrected. A technology and support fee of $100 per month is also required, in addition to the costs of maintaining the computer system and technology. Furthermore, franchisees may incur costs for updating the Cicis Approved POS System, which total approximately $3,000 to $4,800 annually, with $1,200 payable to Cicis or its affiliates.
Other potential fees include on-site opening assistance, estimated between $800 and $3,025, though this may be waived for the first two restaurants. Interest may be charged on overdue amounts at 5% per month or the maximum rate allowed by law. Training fees for replacement or successor personnel can reach up to $2,500 per person, plus travel expenses for trainers. Additional and remedial training may cost up to $250 per day, and a transfer fee of $7,500, plus estimated expenses of $500 to $1,000, is required for franchise agreement transfers. Finally, franchisees are required to contribute 5% of their Net Sales to the marketing fund.