factual

Can the Excess Cooperative Contribution for a Cicis restaurant be applied to offset the required Local Marketing Spend?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

You must make contributions to the Cooperative in the amounts required by the Cooperative's governing documents ("Minimum Cooperative Contribution"). We will apply your Minimum Cooperative Contribution to offset your required Local Marketing Spend. You must also contribute to the Cooperative any additional amounts authorized by a vote of the Cooperative's members and approved by us ("Excess Cooperative Contribution"). The Excess Cooperative Contribution will not be applied to offset your required Local Marketing Spend.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–38)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, franchisees are required to participate in marketing cooperatives if one is established in their area. Franchisees must make a 'Minimum Cooperative Contribution,' which Cicis will apply to offset the franchisee's required Local Marketing Spend. However, any additional amounts authorized by a vote of the Cooperative's members and approved by Cicis, known as the 'Excess Cooperative Contribution,' will not be applied to offset the required Local Marketing Spend.

In simpler terms, while a portion of cooperative marketing contributions can count towards the local marketing spend requirement, any extra contributions beyond the minimum will not reduce the amount the franchisee must spend on local marketing. This means that franchisees need to budget separately for both their minimum cooperative contributions (which offset local marketing spend) and any excess contributions, as the latter is an additional expense.

This policy ensures that Cicis franchisees actively participate in both cooperative and local marketing efforts. The distinction between minimum and excess contributions provides a degree of flexibility while maintaining a baseline expectation for local marketing investment. Franchisees should carefully consider the potential costs of both mandatory and voluntary cooperative contributions when evaluating the overall marketing expenses associated with a Cicis franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.