Are the fees and expenses described in Item 6 of the Cicis FDD generally refundable?

According to the 2025 Cicis Franchise Disclosure Document, the fees and expenses outlined in Item 6, titled "Other Fees," are generally non-refundable. The FDD explicitly states that unless otherwise noted, all fees and expenses in Item 6 are uniformly imposed, non-refundable, and payable to Cicis. This means that franchisees should anticipate that most of the fees they pay to Cicis, such as the Royalty Fee, Non-Compliance Fee, Technology and Support Fee, and others, will not be returned under any circumstances.

This non-refundable policy has significant implications for prospective Cicis franchisees. It underscores the importance of carefully evaluating the financial obligations detailed in Item 6 and ensuring they have the resources to meet these obligations. Franchisees should factor these non-refundable fees into their financial projections and business plans, understanding that these costs are sunk costs.

While the general rule is non-refundability, the FDD does not elaborate on specific scenarios or exceptions where a refund might be possible. Therefore, it is crucial for potential franchisees to seek clarification from Cicis regarding any potential exceptions or circumstances under which a refund of fees might be considered. Understanding the specific conditions and terms associated with each fee is essential for making an informed investment decision.