Does the Development Incentive Program Addendum apply to Franchise Agreements executed before the Effective Date of the Addendum for Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
On Smile LLC ("we") and the "Franchisee" identified below ("you" and, together with us, the "Parties") execute this Development Incentive Program Addendum (the "Addendum") to supplement and amend that certain Franchise Agreement they have executed immediately prior to the execution of this Addendum (as it might have otherwise been amended, the "Franchise Agreement"). The Franchise Agreement was executed pursuant to a Development Agreement between us and you or your affiliate (the "Development Agreement"). The "Effective Date" of this Addendum is the same as the Effective Date of the Franchise Agreement. Capitalized terms used but not defined in this Addendum have the meanings given them in the Franchise Agreement. For valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Development Incentive Program Addendum is designed to supplement and amend franchise agreements executed immediately prior to the execution of the addendum. The effective date of the addendum is the same as the effective date of the franchise agreement it amends.
Specifically, the addendum applies to franchise agreements executed pursuant to a Development Agreement between Cicis and the franchisee or their affiliate. This means that the Development Incentive Program is intended to be applied to new franchise agreements that are part of an existing development agreement, aligning the incentives at the time of the new franchise agreement's execution.
For a Cicis franchisee, this implies that to benefit from the Development Incentive Program, the franchise agreement must be executed in conjunction with the addendum. Agreements already in place before the addendum's effective date would not be eligible for the program's incentives unless explicitly amended to include them. This ensures that the incentives are part of the initial agreement and understanding between Cicis and the franchisee.