What fee is waived for Cicis franchisees approved to participate in the Veterans Incentive Program and remain in good standing?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Regarding Veteran Status. You have asked to participate in our Veterans Incentive Program (the "Program") and, in support of your request, have provided us with information, whether as part of the Application Materials or separately (the "Supporting Information"), to confirm your qualifications to participate in the Program. You represent and warrant to us that the Supporting Information is true and correct and that you satisfy all of our requirements for participation in the Program. In reliance on the foregoing, we approve your participation in the Program with respect to Franchise Agreement. You must promptly notify us, in writing, if any of the Supporting Information changes or ceases to be true and correct. We may revoke your participation in the Program if, at any time, we determine that you no longer qualify for participation.
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- Waiver of Initial Franchise Fee. We hereby waive your obligation to pay us an Initial Franchise Fee while you are approved to participate in the Program and remain in good standing. We reserve the right to revoke the waiver at any time you are either no longer approved to participate in the Program or cease to be in good standing, in which case, you will pay us the Initial Franchise Fee which, absent the waiver, is required under the Franchise Agreement. "Good Standing" means that you are in compliance with all material obligations under the Franchise Agreement, and you and your affiliates are in compliance with all material obligations under any other agreements between us and you or them. You agree that we will have sole discretion to determine whether particular obligations are "material" for purposes of determining good standing, and our decision will be final.
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- Modification of Royalty Fees. The following is added to the end of Section 4.C of the Franchise Agreement:
Provided you remain a participant in the Program (as we determine in our sole discretion) and are in good standing, for Net Sales generated through the 1st anniversary of the Opening Date of the Restaurant, the Royalty Fee will be calculated at 3% of those Net Sales;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees approved to participate in the Veterans Incentive Program and who remain in good standing may have their Initial Franchise Fee waived. For those entering into an Area Development Agreement, the Development Fee is also waived. Good standing requires compliance with all material obligations under the Franchise Agreement, Development Agreement, and any other agreements with Cicis. Cicis retains sole discretion to determine what constitutes a 'material' obligation, and their decision is final.
This waiver of fees can significantly reduce the initial investment required to open a Cicis franchise, making it more accessible for eligible veterans. However, the franchisee must maintain good standing to keep the waiver in effect. Failure to comply with the agreements could result in the franchisee having to pay the full Initial Franchise Fee and Development Fee, impacting their financial stability.
The Veterans Incentive Program addendum specifies that Cicis can revoke the waiver if the franchisee is no longer approved for the program or ceases to be in good standing. This condition highlights the importance of maintaining compliance with all agreements and obligations to avoid losing the financial benefit of the waiver. The specific amount of the Initial Franchise Fee and Development Fee that are waived are not specified in this excerpt.
It is important for prospective franchisees to carefully review the terms and conditions of the Veterans Incentive Program, including the definition of 'Good Standing' and the potential consequences of non-compliance. Understanding these requirements is crucial for making an informed decision about investing in a Cicis franchise and participating in the program.