Besides the Technology and Support Fee, what other costs are Cicis franchisees responsible for regarding technology?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
id to us via EFT (defined below) or such other means we specify from time to time. We will determine from time to time the start and end day of the week for purposes of calculating the Royalty Fee and the day of the week on which payment of the Royalty Fee is due. If the date on which such payments would otherwise be due is not a business day, then payment will be due on the next business day.
- D. Technology and Support Fee. During the Term of this Agreement, you will pay us, or a serviceprovider we designate (which may be us or our affiliate) a fee in the amount of $100 per month for your right to use certain technology that we mandate and make available for use in the operation of your Restaurant from time to time ("Technology and Support Fee"). The Technology and Support Fee is in addition to all direct out-of-pocket costs you must otherwise incur to acquire and maintain the required computer system and other technology to operate your Restaurant in compliance with the terms of this Agreement and the Manual. You must pay the Technology and Support Fee at the times, and in the manner, designated by us or the provider of such services. We may require you to enter into a written agreement with a third-party provider under terms and conditions we approve or require.
- E. Net Sales. "Net Sales" means all sales, revenues, charges and receipts received by you from your Restaurant or attributed to your Restaurant, including all revenue that is generated from the operation of any video game machines (including bulk machines) located at your Restaurant, whether from cash, check, credit or debit card, gift cards, barter exchange, trade credit or other credit transactions, or any other forms of payment, but excludes (i) Sales Tax (as defined below), (ii) any refunds made for your customers, and (iii) receipts from the sale of products from vending machines located at your Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, in addition to the $100 per month Technology and Support Fee, franchisees are responsible for all direct out-of-pocket costs associated with acquiring and maintaining the required computer system and other technology needed to operate the restaurant. This includes any license or other agreements with Cicis, its affiliates, or third parties necessary to use required software programs. Franchisees must also maintain a secure technology infrastructure that meets Cicis's requirements, including PCI DSS compliance and other regulations for customer privacy and credit card information protection.
This means that while Cicis charges a monthly fee for the right to use certain mandated technologies, the franchisee bears the full financial burden of purchasing, installing, and updating all necessary hardware and software. These costs can be significant and should be carefully considered when evaluating the overall investment required to open and operate a Cicis franchise. The franchisee is also responsible for ensuring their technology infrastructure meets Cicis's security standards and remains compliant with evolving data protection regulations.
Furthermore, Cicis retains the right to upgrade, substitute, or change the required technology at its sole discretion, which could lead to additional, unforeseen expenses for the franchisee. Cicis also has electronic access to the data managed by the franchisee's software and hardware. Therefore, prospective franchisees should inquire about the typical range of these technology-related expenses, the frequency of required upgrades, and the specific data security measures they will need to implement to maintain compliance and protect customer information.