What agreement does the Veteran's Incentive Program Addendum form an integral part of for Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- Modification of Royalty Fees. Section 4.C of the Franchise Agreement is supplemented and amended by adding the following to the end of the Section:
Provided you remain a participant in the Program (as we determine in our sole discretion) and are in good standing, for Net Sales generated through the 1st anniversary of the Opening Date of the Restaurant, the Royalty Fee will be calculated at 3% of those Net Sales. If, at any time prior to the 1st anniversary of the Opening Date, you cease to be either approved to participate in the Program or in good standing, the foregoing Royalty Fee reduction will automatically, and without any further notice, be null and void, and the Royalty Fee will thereafter be calculated as described in Section 4.C without regard to this paragraph.
- Construction; Execution. This Addendum forms an integral part of and is incorporated into the Franchise Agreement and represents the sole agreement between the Parties with respect to the matters set forth herein. Except as set forth herein, the Franchise Agreement remains in full force and effect. This Addendum may be executed in counterparts which, taken together, constitute a single document. Electronic execution is authorized, and photocopies of the Addendum and signatures hereto have the same force and effect as originals.
Thus executed on the dates shown below and made effective as of the Effective Date.
ON SMILE LLC, a Delaware limited liability company [Name] EXHIBIT D-2 VETERAN'S INCENTIVE PROGRAM ADDENDUM
(Area Development Agreement)
VETERAN'S INCENTIVE PROGRAM ADDENDUM
(Area Development Agreement)
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Veteran's Incentive Program Addendum can form an integral part of either the Franchise Agreement or the Area Development Agreement, depending on the specific context. For franchisees entering into a standard franchise agreement, the addendum supplements and amends that agreement directly. Alternatively, for developers who are building multiple Cicis locations, the addendum supplements and amends the Area Development Agreement.
When the Veteran's Incentive Program Addendum is part of the Franchise Agreement, it modifies specific sections of that agreement, such as Section 4.C regarding Royalty Fees. The addendum specifies that as long as the franchisee remains a participant in the program and is in good standing, the royalty fee will be calculated at 3% of net sales for the first anniversary of the restaurant's opening date. If the franchisee ceases to be approved or in good standing, this royalty fee reduction becomes void.
When the Veteran's Incentive Program Addendum is part of the Area Development Agreement, it may waive the obligation to pay a Development Fee under the Development Agreement and an Initial Franchise Fee under the Qualifying Franchise Agreements. The franchisee must remain approved to participate in the program and remain in good standing to maintain the waiver. The addendum also stipulates that as each Qualifying Franchise Agreement is executed, both parties will also execute an amendment to the agreement in the form attached as Attachment A.