Does the Cicis Development Incentive Program Addendum specify any financial thresholds other than the initial franchise fee and royalty fees?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
eements, 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:
While you are approved to participate in the Program and provided you and your affiliates remain in good standing, we agree that the Development Fee will be reduced to $10,000 times the total number of Restaurants to be developed hereunder, and the Initial Franchise Fee under each Qualifying Franchise Agreement shall be reduced to $10,000. We reserve the right to revoke the foregoing reductions at any time you are no longer approved to participate in the Program or you ceas
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 outlines financial considerations beyond the initial franchise fee and royalty fees. Specifically, it addresses the Development Fee, which is calculated as $15,000 times the total number of restaurants to be developed under the Area Development Agreement.
Under the Development Incentive Program, Cicis may reduce the Development Fee to $10,000 times the total number of restaurants to be developed. This reduction is contingent upon the franchisee remaining approved to participate in the program and maintaining good standing. Good standing is defined as compliance with all material obligations under the Development Agreement, Franchise Agreements, and any other agreements with Cicis. Cicis retains sole discretion in determining whether obligations are considered "material."
Furthermore, Cicis may waive the Development Fee entirely while the franchisee is approved for the program and remains in good standing. However, Cicis reserves the right to revoke this waiver if the franchisee's participation in the program is terminated or if they cease to be in good standing. In such cases, the franchisee would be responsible for paying the full Development Fee as required under the Development Agreement.
These provisions in the Development Incentive Program Addendum offer potential financial benefits to franchisees who meet the specified criteria, but also highlight the importance of maintaining compliance and good standing to avoid incurring additional fees. Prospective franchisees should carefully review the terms of the Development Agreement and Franchise Agreements to fully understand their obligations and the potential financial implications of participating in the Development Incentive Program.