How is the Cicis Development Fee credited towards the Initial Franchise Fee for each restaurant developed?
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 Cicis's 2025 Franchise Disclosure Document, when a developer signs an agreement, they must pay a non-refundable development fee. This fee is calculated by multiplying $15,000 by the total number of restaurants the developer plans to open. For each Cicis restaurant the developer opens, $15,000 of the development fee is applied as a credit towards the initial franchise fee. The developer is then responsible for paying any remaining balance of the initial franchise fee when they sign the Franchise Agreement for that specific restaurant.
Cicis will not refund any portion of the development fee, nor will they apply any credit that exceeds the amounts specified or the total amount of the development fee. The development fee is considered fully earned by Cicis once the development agreement is signed by both parties.
It is important for prospective developers to understand that the development fee is non-refundable and is fully earned by Cicis upon signing the agreement. The credit towards the initial franchise fee is capped at $15,000 per restaurant, and any remaining balance of the initial franchise fee must be paid by the developer. This arrangement is fairly typical in the franchise industry, where initial fees are used to offset the franchisor's costs of training and setting up a new franchisee.