To whom are the fees and expenses in Item 6 of the Cicis FDD generally payable?

According to Cicis's 2025 Franchise Disclosure Document, the fees and expenses outlined in Item 6 are generally imposed by and payable to Cicis. However, the document notes an exception regarding the cost of updating the Cicis Approved POS System, where $1,200 of the annual cost is payable to Cicis or its affiliates. Additionally, interest on overdue amounts may be payable to Cicis or its affiliates. This indicates that while most fees are directly paid to the franchisor, some payments may be directed to affiliated entities.

This is a fairly standard arrangement in franchising, where certain fees are collected by the franchisor to cover services they provide, while others might be passed through to affiliates for specific services rendered. For a prospective franchisee, this means understanding not only the types and amounts of fees required but also the entities to which these payments are directed. Knowing where the money goes can provide insight into the services being provided and the relationships between Cicis and its affiliates.

It is important for potential Cicis franchisees to clarify the specific services provided by Cicis versus its affiliates and to understand how these fees are utilized. This understanding can help in assessing the overall value proposition of the franchise and in budgeting for ongoing operational costs. Franchisees should also inquire about any potential changes to these payment arrangements and the circumstances under which fees might be directed to different entities.