Who approves the additional amounts authorized by a vote of the Cooperative's members for Cicis franchisees?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) If your Restaurant is located within an area that is or becomes covered by a Cooperative (defined below), you must contribute to the Cooperative all amounts required by the Cooperative's
governing documents ("Minimum Cooperative Contribution") and any additional amounts authorized by a vote of the Cooperative's members and approved by us ("Excess Cooperative Contribution"). Your Minimum Cooperative Contribution may be applied toward your Local Marketing Spend except where and to the extent used by the Cooperative on programs that, as described above, do not satisfy the Local Marketing Spend. Excess Cooperative Contributions may not be applied to offset the Local Marketing Spend.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a Cicis restaurant is within an area covered by a Cooperative, franchisees must contribute to that Cooperative. This includes both the "Minimum Cooperative Contribution" required by the Cooperative's governing documents and any "Excess Cooperative Contribution".
The "Excess Cooperative Contribution," which represents additional amounts authorized by a vote of the Cooperative's members, requires approval from Cicis. This means that while the Cooperative members can vote to authorize additional contributions, Cicis has the final say on whether those amounts are actually implemented for its franchisees.
This approval process gives Cicis some control over the financial obligations of its franchisees related to cooperative marketing efforts. It also ensures that Cicis is aligned with the marketing strategies and expenditures of the Cooperative. Franchisees should be aware that while they are required to participate in the Cooperative, additional financial burdens are subject to Cicis's approval.