What document does the Underperforming Incentive Program Addendum amend for Cicis franchisees?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT D-4 UNDERPERFORMING INCENTIVE PROGRAM ADDENDUM
(Franchise Agreement)
UNDERPERFORMING INCENTIVE PROGRAM ADDENDUM
(Franchise Agreement)
On Smile LLC ("we") and the "Franchisee" identified below ("you" and, together with us, the "Parties") execute this Underperforming Incentive Program Addendum (the "Addendum") to supplement and amend that certain Franchise Agreement the Parties have executed immediately prior to the execution of this Addendum (as it might have otherwise been amended, the "Franchise Agreement"). The "Effective Date" of this Addendum is the same as the Effective Date of the Franchise Agreement. 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 Underperforming Incentive Program Addendum supplements and amends the Franchise Agreement. This addendum is executed between Smile LLC and the franchisee to modify the original terms of the Franchise Agreement. The effective date of the addendum aligns with the effective date of the Franchise Agreement, ensuring that the modifications take effect simultaneously.
This addendum is designed to provide incentives for underperforming Cicis restaurants, potentially offering financial relief or modified terms to help improve their performance. The addendum explicitly states that terms not defined within it will have the same meanings as defined in the original Franchise Agreement, maintaining consistency between the two documents.
For a prospective Cicis franchisee, this means that if their restaurant is identified as underperforming, they may be eligible for specific incentives outlined in the Underperforming Incentive Program Addendum. These incentives could include modifications to royalty fees or other forms of financial assistance, as detailed within the addendum. It's important for franchisees to understand the criteria for qualifying for the program and the specific benefits it offers, as these can significantly impact their restaurant's financial outlook and operational strategy.
It is important to note that the specific details of the incentives, eligibility requirements, and conditions for maintaining participation in the program are likely detailed within the full addendum, which is not fully provided in this excerpt. A prospective franchisee should carefully review the entire Underperforming Incentive Program Addendum and discuss any questions or concerns with Cicis before signing the Franchise Agreement.