When is the Cicis Development Fee considered fully earned by the franchisor?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
f the Site, you or an Affiliate we approve must sign our then-current form of Franchise Agreement and related documents, the terms of which may differ substantially from the terms contained in the form of Franchise Agreement we are using to grant Franchises on the Effective Date, except that the Royalty rate will not exceed 5% of Gross Sales for Cicis Buffet Restaurants or 6% of Gross Sales for Cicis To Go Restaurants, and the Initial Franchise Fee will be $30,000 for Cicis Buffet Restaurant or $15,000 for Cicis To Go Restaurants. Each Franchise Agreement will govern the development and operation of the Restaurant at the accepted Site identified therein.
3. DEVELOPMENT FEE.
On your execution of this Agreement and in consideration of the grant of the Development Rights, you must pay us a nonrecurring, nonrefundable, and fully earned (on execution of this Agreement) development fee in an amount equal to $15,000 times the tota
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the Development Fee is considered fully earned by Cicis upon the execution of the Development Agreement by both the franchisee and Cicis. This fee is nonrefundable. The Development Fee is calculated by multiplying $15,000 by the total number of restaurants the franchisee commits to develop under the agreement.
For each restaurant developed under the agreement, Cicis will credit $15,000 of the Development Fee towards the Initial Franchise Fee. The franchisee is responsible for paying any remaining balance of the Initial Franchise Fee upon signing the Franchise Agreement for each restaurant. However, Cicis is not obligated to refund any portion of the Development Fee or apply credits exceeding the specified amounts or the total Development Fee.
It's important to note that Cicis may offer a Development Incentive Program that could waive or reduce the Development Fee and Initial Franchise Fee if the franchisee meets certain qualifications and remains in good standing. However, Cicis reserves the right to revoke these waivers or reductions if the franchisee no longer qualifies for the program or fails to maintain good standing, in which case the franchisee would be responsible for paying the full Development Fee and Initial Franchise Fees.