Does the Cicis Development Incentive Program Addendum supersede the original Franchise Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current assets: | |||
|---|---|---|---|
| Cash and cash equivalents | $ 1,854,735 | $ 2,931,372 | |
| Cash and cash equivalents—marketing fund, restricted | 434,199 | 771,794 | |
| Accounts receivable, net: | |||
| Trade receivables | 290,921 | 325,874 | |
| Marketing fund, restricted | 2,395,119 | 2,537,488 | |
| Related party receivable | 695,717 | 79,530 | |
| Prepaid expenses and other current assets | 859,866 | 228,561 | |
| Total current assets | 6,530,557 | 6,874,619 | |
| Other receivables | 12,638 | 58,761 | |
| Website, net | 150,333 | 194,333 | |
| Intangible assets, net | 98,719 | 109,488 | |
| Goodwill, net | 14,678 | 17,058 | |
| Total noncurrent assets | 276,368 | 379,640 | |
| Total assets | $ 6,806,925 | $ 7,254,259 |
ATTACHMENT A
DEVELOPMENT INCENTIVE PROGRAM ADDENDUM (Franchise Agreement)
DEVELOPMENT INCENTIVE PROGRAM ADDENDUM
(Franchise Agreement)
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:
- 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 does not supersede the original Franchise Agreement. Instead, the Addendum supplements and amends the original agreement.
Specifically, the Addendum forms an integral part of and is incorporated into the Franchise Agreement. The original Franchise Agreement remains in full force and effect, except for the specific points supplemented or amended by the Addendum. This means that all terms and conditions of the original agreement still apply unless explicitly changed by the Addendum.
This type of addendum structure is common in franchising, allowing franchisors to offer incentives or modify terms without rewriting the entire agreement. For a Cicis franchisee, this means carefully reviewing both the original Franchise Agreement and the Addendum to understand the complete set of obligations and benefits. The Addendum will only alter specific sections, leaving the rest of the original agreement intact.