How is the development fee applied to the initial franchise fee under the Cicis Development Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
centive programs:
- Development Incentive Program: If you enter into a new 5-unit Area Development Agreement and remain in good standing under all agreements with us, the initial franchise fee you pay under each Franchise Agreement you sign pursuant to the Area Development Agreement will be reduced to $10,000, and the development fee will be $50,000. We will then apply the development fee, in $10,000 increments, in full satisfaction of the initial franchise fee due under each Franchise Agreement you sign pursuant to the Area Development Agreement. To participate in this program, you must sign and satisfy the conditions under the Development Incentive Program Addendum attached as Exhibit D-1 to this Disclosure Document when you sign the Area Development Agreement or, as applicable, the Fr
Source: Item 5 — INITIAL FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Development Incentive Program offers a reduction in the initial franchise fee for franchisees who enter into a new 5-unit Area Development Agreement and remain in good standing. Under this program, the initial franchise fee is reduced to $10,000 per franchise agreement, and a development fee of $50,000 is required.
The $50,000 development fee is applied in increments of $10,000 to fully satisfy the initial franchise fee due for each Franchise Agreement signed under the Area Development Agreement. This means that the development fee essentially covers the reduced initial franchise fees for the five units outlined in the agreement.
To participate in the Cicis Development Incentive Program, franchisees must sign and meet the conditions outlined in the Development Incentive Program Addendum, which is attached as Exhibit D-1 to the Disclosure Document. This addendum must be signed when the Area Development Agreement or, if applicable, the Franchise Agreement is signed. This program provides a financial incentive for franchisees looking to develop multiple Cicis locations, reducing the upfront costs associated with each new franchise.