Who determines the amount of the Post-Termination / Post-Expiration De-identification Costs for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnification | Amount of damages suffered | On demand | You must indemnify, defend, and hold us, our affiliates, and our and affiliates' respective owners, directors, managers, officers, employees, agents, successors, and assignees harmless against all third party claims arising from the development or operation of your Restaurant (or by your employees, or others that arise from your employment practices). |
| Audit Fee | Cost of audit | When billed | Payable only if we find, after an audit, that you have understated any amount owed to us by more than 3% or if we decide to conduct an audit because of your failure to timely submit the required records or reports. |
| Insurance Fee | $250, plus actual cost of obtaining the insurance coverage | When billed | If you fail to maintain the required insurance, we have the right, but not the obligation, to obtain it for you. If we do, we will charge you a fee plus the cost of the insurance. |
| Insufficient Funds Fee | $100 per occurrence | On demand | If a payment does not clear your bank, we charge a service fee of $25, which includes the bank charge. We may draft your account for this fee. |
| Enforcement Costs | Costs awarded by the applicable court | As incurred | Payable only if you do not comply with the Franchise Agreement or Area Development Agreement, and we are the prevailing party in any relevant litigation. |
| Post-Termination / Post-Expiration De-identification Costs | Actual cost incurred by us | As incurred | If you fail to de-identify after the franchise terminates or expires, we may make the necessary changes at your expense. |
Source: Item 6 — OTHER FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the cost for post-termination or post-expiration de-identification is determined by the actual costs Cicis incurs. This fee is charged if a franchisee fails to remove Cicis branding and identification from the premises after the franchise agreement terminates or expires. In such cases, Cicis reserves the right to make the necessary changes themselves, and the franchisee will be responsible for covering these expenses.
This means that the amount a franchisee might have to pay for de-identification can vary widely depending on the extent of branding on the premises and the cost of labor and materials required to remove or alter it. Franchisees should be aware that failing to properly de-identify their former Cicis location can lead to unpredictable and potentially significant expenses.
It is important for prospective franchisees to understand their obligations for de-identification upon termination or expiration of the franchise agreement. They should carefully review the terms of the agreement and plan accordingly to avoid incurring these costs. It would be prudent to discuss specific de-identification requirements and potential cost factors with Cicis during the due diligence process.