What is the definition of 'Program' in the context of the Cicis Underperforming Incentive Program Addendum?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisee's Representations. You represent and acknowledge that (i) the information you provided us in your application for the Underperforming Incentive Program (the "Program") was true and correct when provided and is true and correct as of the date you sign this Addendum; (ii) based on such information, you qualify and have been approved by us to participate in the Program; and (iii) you are in Good Standing (as defined in Section 5 below).
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- Reimbursement of Renewal Fee. If, in connection with your purchase and, if applicable, re-opening of the Restaurant, you conducted a grand opening promotion approved by us, we will reimburse you the expenses you incurred and paid in executing the grand opening promotion (less salaries and benefits paid to your owners or employees), up to the amount of the Renewal Fee you paid, if any, when you signed the Franchise Agreement. If you seek reimbursement under this paragraph, you must submit documentary proof of the paid expense within 30 days following the completion of your grand opening promotion. We reserve the right to determine, in our sole discretion, whether any submitted expense qualifies for reimbursement under this paragraph.
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- Modification of Royalty Fees. Section 4.C of the Franchise Agreement is supplemented and amended by adding the following to the end of the Section:
We agree that, provided you and your affiliates remain in Good Standing (as defined in the Underperforming Incentive Program Addendum), the Royalty Fee will be as follows: (i) 2% of Net Sales derived from the Effective Date through the day preceding the first anniversary of the Effective Date; (ii) 3% of Net Sales derived from the 1st anniversary to the 2nd anniversary of the Effective Date; and (iii) thereafter, the rate specified in Section 4.C of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the term "Program" within the Underperforming Incentive Program Addendum refers to the specific incentive program that Cicis offers to franchisees whose restaurants are underperforming.
To be eligible for the Program, a franchisee must apply and provide information to Cicis. Cicis uses this information to determine if the franchisee qualifies for the program. The franchisee must also be in "Good Standing," as defined in the addendum.
The Underperforming Incentive Program aims to support franchisees in improving their restaurant's performance through various incentives, such as reimbursement of grand opening promotion expenses (up to the amount of the Renewal Fee) and modifications to royalty fees. For instance, royalty fees may be reduced to 2% of Net Sales from the Effective Date through the day preceding the first anniversary of the Effective Date, then to 3% of Net Sales from the first to the second anniversary, after which the standard royalty fee applies as specified in the Franchise Agreement. Cicis retains the right to determine whether expenses qualify for reimbursement and can revoke participation in the Program if the franchisee is no longer in Good Standing.