Is the Cicis development fee applied towards the initial franchise fees, and if so, in what increments?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
INVESTMENT | | | | |
NOTES:
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- The actual amount of the development fee will depend on the number of Cicis Restaurants you agree to develop under the Area Development Agreement. For a typical opening commitment of 2 or 3 Cicis Restaurants, the Development Fee will be $15,000 multiplied by the number of Cicis Restaurants you agree to open (i.e. $30,000 to $45,000). We will apply the development fee, in increments of $15,000 toward the payment of initial franchise fees due as Franchise Agreements are executed.
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- Under the current incentive programs described in Item 5 above, if you enter into a new 5 unit Area Development Agreement and remain in good standing under all agreements with us, the Development Fee will be $10,000 multiplied by the number of Cicis Restaurants you agree to open i.e. $10,000 x 5 = $50,00. We will apply the development fee, in increments of $10,000 toward the payment of initial franchise fees due as Franchise Agreements are executed.
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- For each Restaurant that you develop pursuant to the terms of an Area Development Agreement, you must execute an individual Franchise Agreement, and incur the costs associated with developing a Restaurant under the terms of that Franchise Agreement, as shown in the 1st chart in this Item 7.
ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Standards and Specifications: In order to maintain the quality and uniformity of all food products, menu items, ingredients, services, products, materials, forms, items, supplies, fixtures, furnishings and equipment utilized in or by Cicis Restaurants, we may, at our discretion, issue certain mandatory standards, specifications, operating procedures and rules (the "System Standards"). You must strictly comply with all System Standards.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT FOR A CICIS BUFFET RESTAURANT (FDD pages 21–25)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the development fee is applied towards the initial franchise fees. If a franchisee agrees to develop 2 or 3 Cicis restaurants, the development fee will be $15,000 multiplied by the number of restaurants, ranging from $30,000 to $45,000. Cicis applies this development fee in increments of $15,000 toward the payment of initial franchise fees as Franchise Agreements are executed.
However, under the Development Incentive Program, if a franchisee enters into a new 5-unit Area Development Agreement and remains in good standing, the development fee will be $10,000 multiplied by the number of Cicis Restaurants to be opened, totaling $50,000. In this case, Cicis applies the development fee in increments of $10,000 toward the payment of initial franchise fees as Franchise Agreements are executed.
Furthermore, if a Franchise Agreement is signed pursuant to an Area Development Agreement, Cicis will apply the development fee, in increments of $15,000 ($10,000 if participating in the Development Incentive Program), toward the payment of initial franchise fees. The initial franchise fee will be reduced to $5,000 under the Franchise Agreements executed pursuant to the Reopen Incentive Program, $10,000 under the Franchise Agreements executed pursuant to the Development Incentive Program, and $0 under the Franchise Agreements executed pursuant to the Veteran's Incentive Program.