What is the amount of the Insurance Fee for a Cicis franchise, excluding the actual cost of coverage?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance Fee | $250, plus actual cost of obtaining the insurance coverage | When billed | If you fail to maintain the required insurance, we have the right, but not the obligation, to obtain it for you. If we do, we will charge you a fee plus the cost of the insurance. |
Source: Item 6 — OTHER FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees may incur an Insurance Fee of $250, in addition to the actual cost of obtaining the insurance coverage. This fee is charged when billed, and it is only applied if the franchisee fails to maintain the required insurance coverage. In such cases, Cicis has the right, but not the obligation, to obtain the necessary insurance on behalf of the franchisee.
This means that if a Cicis franchisee does not secure and maintain the insurance coverage that Cicis requires, Cicis can step in and obtain the insurance themselves. However, the franchisee will then be responsible for not only the cost of the insurance policy itself, but also an additional $250 fee. This fee likely covers Cicis's administrative costs and efforts in securing the insurance on the franchisee's behalf.
Franchisees should ensure they understand and meet all insurance requirements outlined in the Franchise Agreement to avoid this additional fee. Maintaining proper insurance is a standard requirement in franchising to protect both the franchisee's business and the franchisor from potential liabilities. Failing to comply with insurance requirements can lead to Cicis procuring the insurance and passing on the costs, including the Insurance Fee, to the franchisee.