Is the Cicis Development Incentive Program Addendum dependent on the execution of a Development Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
On Smile LLC ("we") and the "Developer" identified below ("you" and, together with us, the "Parties") execute this Development Incentive Program Addendum (the "Addendum") to supplement and amend that certain Area Development Agreement they have executed immediately prior to the execution of this Addendum (as it might have otherwise been amended, the "Development Agreement"). The "Effective Date" of this Addendum is the Effective Date of the Development Agreement. Capitalized terms used but not defined in this Addendum have the meanings given them in the Development Agreement. For valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
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- Approval to Participate in Development Incentive Program. In the Development Agreement, you have agreed to develop or cause your affiliates to develop, in each case pursuant to individual Franchise Agreements, at least five (5) Cicis Pizza Restaurants. In light of your acquisition of the Development Rights and your agreement to remain in good standing (as defined below), we have agreed to allow you to participate in our Development Incentive Program (the "Program") with respect to the Development Agreement and Franchise Agreements that you or your affiliates execute pursuant to the Development Agreement from and after the Effective Date of this Addendum (the "Qualifying Franchise Agreements"). We may revoke your participation in the Program if, at any time, we determine that you no longer qualify to participate.
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- Reduction of Development and Initial Franchise Fees. Section 3 of the Development Agreement is supplemented and amended by adding the following to the end of the Section:
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the Development Incentive Program Addendum is dependent on the execution of a Development Agreement. The addendum is designed to supplement and amend an Area Development Agreement that the parties have executed immediately prior to the execution of the addendum. The effective date of the addendum is tied to the effective date of the Development Agreement, indicating a direct relationship between the two.
The Development Incentive Program is applicable to developers who agree to develop at least five Cicis restaurants under individual Franchise Agreements. By participating in the program, developers may receive incentives related to the Development Agreement and Franchise Agreements executed under it. However, Cicis retains the right to revoke participation in the program if the developer no longer qualifies.
The Development Incentive Program Addendum modifies specific sections of the Development Agreement, such as Section 3, which addresses the reduction of development and initial franchise fees. This further emphasizes the addendum's role as an amendment to the original Development Agreement, clarifying that the incentive program is not a standalone agreement but rather an integrated part of the Development Agreement framework.