Can Cicis authorize other items to be excluded from Net Sales, and can they revoke this permission?

According to Cicis's 2025 Franchise Disclosure Document, Cicis has the authority to allow certain items to be excluded from net sales. This means that Cicis franchisees may, at times, be able to reduce their royalty and marketing fund obligations by excluding specific revenue streams from their net sales calculations.

However, Cicis also retains the right to revoke or withdraw any such permission at any time, according to the FDD. This implies that exclusions are not guaranteed and can be changed at Cicis's discretion. Franchisees need to stay informed about any changes to these policies to accurately calculate and remit their fees.

This flexibility granted to Cicis is not uncommon in franchising, as franchisors often need to adjust their policies based on market conditions or changes in their overall business strategy. Prospective franchisees should inquire about the typical frequency and nature of these types of changes and how they are communicated to franchisees to better understand the potential impact on their business.