Who bears the expense of participating in Cicis' Marketing Programs?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
vely responsible for the terms and conditions of employment of your employees, including recruiting, hiring, firing, training, compensation, work hours and schedules, work assignments, safety and security, discipline, and supervision. You agree to manage the employment functions of your Restaurant in compliance with the Laws.
7. MARKETING AND RELATED FEES
- A. Participation in Marketing and Promotional Programs. We may, from time to time, develop and administer marketing and sales promotion programs designed to promote and enhance the collective success of all Cicis Restaurants, including national, regional, or local programs and limited time offers (each an "LTO") that promote the brand, particular products, or gift cards and other loyalty programs (the "Marketing Programs"). You will participate in all such Marketing Programs, at your expense, in accordance with the terms and conditions we establish for each program.
- (1) All products we require you to offer under any mandatory LTO (or the ingredients for such products) will be automatically shipped to you by our designated supplier within 10 days following the announcement of the LTO unless, within such 10-day period, you have placed an order for the required products (or the ingredients for such products) with our designated supplier in quantities sufficient to satisfy our requirements for the LTO. If you order less than the required amount, our designated supplier will automatically ship the balance to you. Notwithstanding anything to the contrary, you shall be responsible for cost and expenses associated with your purchase or automatic supply by our designated suppliers of the products (or the ingredients for such products) and services required by you to offer any LTO. You hereby authorize us to withdraw payment for all products automatically shipped to you by our designated suppliers on or before the payment date set forth in the supplier's invoice by EFT from your account in accordance with Section 4.H. of this Agreement.
- (2) You will comply with all requirements and specifications we establish, and use all designated vendors, for each Marketing Program.
- (3) We may, from time to time, provide you, without charge, certain marketing pieces regarding the Cicis® franchise opportunity. You must display those materials in your Restaurant in accordance with our direction.
- B. Marketing Contributions and Expenditures.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, franchisees are responsible for the expenses associated with participating in marketing and promotional programs. Cicis may develop and administer marketing and sales promotion programs, including national, regional, or local programs and limited time offers (LTOs). Franchisees must participate in these programs at their own expense, following the terms and conditions established by Cicis for each program.
Specifically, franchisees are responsible for the costs and expenses related to purchasing or automatically receiving products or ingredients from designated suppliers that are required to offer any LTO. This includes the cost of the products themselves, as well as any associated services. Cicis may also provide certain marketing materials without charge, which franchisees are required to display in their restaurants according to Cicis' directions.
In addition to these direct costs, franchisees must contribute 5% of their restaurant's net sales to the Marketing Fund. They are also required to spend at least 1% of their restaurant's net sales on approved local marketing programs within their protected area. If a restaurant is located within a Cooperative, franchisees must contribute to that Cooperative as well. These financial obligations underscore the franchisee's significant role in funding and executing marketing initiatives, with Cicis retaining control over the programs' overall direction and standards.
This arrangement is typical in franchising, where franchisees contribute to marketing funds and also conduct local marketing, while the franchisor manages the overall brand strategy. Prospective Cicis franchisees should carefully consider these marketing expenses and obligations as part of their overall investment and operational costs.