Does the FDD specify any geographic limits related to Cicis' marketing programs?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ontribution or to ensure that any you or any other franchisee benefits directly or pro rata from the Fund's activities.
- (5) Although the Fund is intended to be of perpetual duration, we may terminate the Fund. The Fund will not be terminated, however, until all monies in the Fund have been expended for marketing or promotional purposes or returned to all contributors, without interest, on the basis of their respective contributions.
- D. Cooperatives. We have the right, in our sole discretion, to designate any geographic area in which two or more Cicis Restaurants are located as a region for purposes of establishing a marketing cooperative ("Cooperative") to conduct marketing for the Cicis Restaurants located within the designated Cooperative area. You will be required to participate in any such Cooperative, in accordance with the rules established for the Cooperative, for the area in which your Restaurant is located. All contributions to the Cooperative will be maintained and administered in accordance with the Cooperative's governing documents, and the
Cooperative will be operated solely as a conduit for the collection and authorized expenditure of Cooperative contributions. Each Cooperative will be organized and governed in a form and manner, and will commence operation on a date, we determine in our sole discretion.
- E. Grand Opening. In addition to any other amounts you are required to contribute or spend under this Agreement, you will carry out and fund a grand opening promotion relating to the opening of your Restaurant as we specify in the Manuals or otherwise in writing. Amounts paid by you for the initial grand opening promotion will not be credited toward any other of your obligations under this Agreement.
- F. Business Listings. You must, at your expense, place in your Restaurant's local market area all business listings in such directories (including internet listings) and categories as we require from time to time. Any amount you pay for such business listings will be in addition to your other marketing requirements under this Agreement.
- G. Marketing Approval.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, Cicis has the right to designate geographic areas with two or more Cicis restaurants as a region for establishing a marketing cooperative. Franchisees are required to participate in any cooperative established for the area in which their restaurant is located.
The franchisee must contribute to the cooperative all amounts required by the cooperative's governing documents, referred to as the Minimum Cooperative Contribution, and any additional amounts authorized by a vote of the cooperative's members and approved by Cicis, called the Excess Cooperative Contribution. The Minimum Cooperative Contribution may be applied toward the Local Marketing Spend, except when used by the Cooperative on programs that do not satisfy the Local Marketing Spend. Excess Cooperative Contributions may not be applied to offset the Local Marketing Spend.
In addition to participating in marketing programs, franchisees must contribute 5% of their restaurant's Net Sales to the Marketing Fund. They must also spend at least 1% of their restaurant's Net Sales on approved local marketing programs within their Protected Area. Cicis may aggregate or re-allocate Fund Contributions, Local Marketing Spend, and Minimum Cooperative Contributions to different marketing vehicles as needed.