Is the Cicis Development Fee refundable?
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, the Development Fee is generally nonrefundable. Specifically, upon signing the Development Agreement, the franchisee must pay Cicis a nonrecurring, nonrefundable development fee. This fee is considered fully earned by Cicis upon execution of the agreement. The amount of the development fee is calculated by multiplying $15,000 by the total number of restaurants the franchisee agrees to develop.
For each restaurant developed, Cicis will apply $15,000 of the development fee as a credit toward 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 required to refund any portion of the Development Fee or apply any credit exceeding the specified amounts or the total Development Fee.
However, Cicis offers a Development Incentive Program where the Development Fee can be waived entirely if the franchisee is approved to participate in the Program and remains in good standing. If the franchisee ceases to be in good standing, the Development Fee and Initial Franchise Fees will be required under the Development Agreement and Qualifying Franchise Agreements.