What is the effect of the Cicis Reopen Incentive Program Addendum on the standard Initial Franchise Fee outlined in the Franchise Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
s a Cicis Restaurant by you, your affiliate, or a third party unaffiliated with you and was permanently closed or has been temporarily closed for an extensive period. The franchise agreement that previously governed the owner's operation of the Restaurant has been terminated. You and we have entered into the Franchise Agreement to govern your ownership and operation of the previously closed Restaurant from and after the Effective Date.
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- Reopening of the Restaurant. You agree that you will, at your expense, take the actions described on Attachment A hereto to remodel and refresh the Restaurant (the "Refresh Obligations") prior to reopening the Restaurant, and you will complete the Refresh Obligations and reopen the Restaurant for regular business in accordance with the Franchise Agreement by no later than the Reopening D
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis FDD, the Reopen Incentive Program Addendum can reduce the initial franchise fee under specific conditions. If a franchisee is in good standing and meets the requirements of the Reopen Incentive Program, the initial franchise fee is reduced to $5,000.
To qualify for this reduction, the restaurant must have previously operated as a Cicis restaurant, either by the franchisee, an affiliate, or an unaffiliated third party, and it must have been permanently closed or temporarily closed for an extended period with the previous franchise agreement terminated. The franchisee must also commit to remodeling and refreshing the restaurant at their own expense, adhering to a reopening deadline outlined in Attachment A of the addendum.
However, Cicis reserves the right to revoke this reduction if the franchisee ceases to be in good standing, which means compliance with all material obligations under the Franchise Agreement and other agreements. If the reduction is revoked, the franchisee will be required to pay the remaining balance of the full initial franchise fee as specified in the Franchise Agreement. This decision regarding 'good standing' is at the sole discretion of Cicis, making it essential for franchisees to maintain compliance to retain the reduced fee.