What is the Cicis data collection fee intended to compensate for?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) If you fail to submit when due any information or report required by this Agreement or the Manuals (defined below), including data warehouse reports and information, certificates of insurance, and financial statements, we may, after first providing written notice and a reasonable opportunity to cure assess a reasonable data collection fee for as long as the information or report remains outstanding. Our assessment of the data collection fee will be in addition to our other rights and remedies. If you do not submit when due the Net Sales report, then we will have the right to assess the data collection fee immediately without notice or an opportunity to cure. Our assessment of the data collection fee will be in addition to our other rights and remedies.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the data collection fee is assessed if a franchisee fails to submit required information or reports, such as data warehouse reports, certificates of insurance, and financial statements, when due. Cicis will provide written notice and a reasonable opportunity to correct the issue before assessing the fee. However, if a franchisee fails to submit the Net Sales report on time, Cicis has the right to immediately assess the data collection fee without prior notice or an opportunity to cure the deficiency.
The data collection fee is intended to cover the additional costs and expenses Cicis incurs due to the franchisee's failure to comply with their obligations under the Franchise Agreement. This fee is in addition to any other rights and remedies Cicis may have.
For a prospective Cicis franchisee, this means it is crucial to adhere to all reporting deadlines and requirements outlined in the Franchise Agreement and the Manuals. Failure to do so can result in the assessment of a data collection fee, which adds to the overall cost of operating the franchise. Franchisees should prioritize timely and accurate submission of all required information to avoid incurring this fee and maintain a good standing with Cicis.