What does the Development Incentive Program Addendum do to the initial franchise fee for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
upplement 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:
- Reduction of Initial Franchise Fee. Section 4.A of the Franchise Agreement is supplemented and amended by adding the following to the end of the Section:
While you are approved to participate in the Program and provided you and your affiliates remain in good standing, we agree that the Initial Franchise Fee shall be reduced to $10,000. We rese
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 can significantly reduce the initial franchise fee. If a franchisee is approved to participate in the program and remains in good standing, the initial franchise fee can be reduced to $10,000. This is a notable incentive, as the standard initial franchise fee is $30,000 for a Cicis Buffet Restaurant or $15,000 for a Cicis To Go Restaurant.
However, this reduction is conditional. Cicis reserves the right to revoke the reduction if the franchisee is no longer approved for the program or ceases to be in good standing. If this occurs, the franchisee will be required to pay the remaining balance of the full initial franchise fee. Good standing is defined as compliance with all material obligations under the Franchise Agreement, the Development Agreement, and any other agreements with Cicis.
The franchisor retains sole discretion in determining whether obligations are considered "material," adding a layer of subjectivity to the "good standing" requirement. Furthermore, as part of the Development Incentive Program, Cicis may waive the Development Fee and Initial Franchise Fee entirely while the franchisee is approved to participate in the Program and remains in good standing. If participation in the program is revoked or the franchisee is no longer in good standing, the franchisee will be responsible for paying the Development Fee and Initial Franchise Fees.