What is the dependency for receiving the reduced Initial Franchise Fee for a Cicis franchise under the Reopen Incentive Program Addendum?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
s a Cicis Restaurant by you, your affiliate, or a third party unaffiliated with you and was permanently closed or has been temporarily closed for an extensive period. The franchise agreement that previously governed the owner's operation of the Restaurant has been terminated. You and we have entered into the Franchise Agreement to govern your ownership and operation of the previously closed Restaurant from and after the Effective Date.
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- Reopening of the Restaurant. You agree that you will, at your expense, take the actions described on Attachment A hereto to remodel and refresh the Restaurant (the "Refresh Obligations") prior to reopening the Restaurant, and you will complete the Refresh Obligations and reopen the Restaurant for regular business in accordance with the Franchise Agreement by no later than the Reopening D
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, under the Reopen Incentive Program Addendum, a franchisee can have their Initial Franchise Fee reduced to $5,000 if they and their affiliates remain in good standing. Good standing is defined as compliance with all material obligations under the Franchise Agreement and any other agreements between the franchisee (or their affiliates) and Cicis.
Cicis retains the right to revoke this reduction if the franchisee ceases to be in good standing, at which point the franchisee would be responsible for paying the remaining balance of the full Initial Franchise Fee. The determination of whether obligations are considered "material" is at the sole discretion of Cicis, and their decision is final.
This means that to maintain the reduced Initial Franchise Fee, a Cicis franchisee must consistently meet all requirements outlined in their agreements with Cicis. Failure to comply with these obligations, even if the franchisee believes the non-compliance is not material, could result in the loss of the reduced fee and a demand for the outstanding balance. Prospective franchisees should carefully review all agreement terms and seek clarification on what Cicis considers "material" to fully understand their obligations.