What is the dependency for receiving the modified Royalty Fees for a Cicis franchise under the Reopen Incentive Program Addendum?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Provided you remain a participant in the Program (as we determine in our sole discretion) and are in good standing, for Net Sales generated through the 1st anniversary of the Opening Date of the Restaurant, the Royalty Fee will be calculated at 3% of those Net Sales. If, at any time prior to the 1st anniversary of the Opening Date, you cease to be either approved to participate in the Program or in good standing, the foregoing Royalty Fee reduction will automatically, and without any further notice, be null and void, and the Royalty Fee will thereafter be calculated as described in Section 4.C without regard to this paragraph.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, to receive modified royalty fees under the Reopen Incentive Program Addendum, a franchisee must remain a participant in the program, as determined by Cicis, and be in good standing. If these conditions are met, the royalty fee will be calculated at 3% of net sales generated through the first anniversary of the restaurant's opening date.
However, if at any point before the first anniversary of the opening date, the franchisee ceases to be approved to participate in the program or falls out of good standing, the royalty fee reduction becomes void without notice. In such cases, the royalty fee will revert to the rate described in Section 4.C of the Franchise Agreement, without considering the Reopen Incentive Program Addendum.
This means that maintaining compliance with the Franchise Agreement and Cicis's standards is crucial for a franchisee to benefit from the reduced royalty fees offered under this program. Cicis retains the sole discretion to determine whether a franchisee remains in good standing and eligible for the program, making it essential for franchisees to adhere to all requirements and maintain a positive relationship with the franchisor.