What fees are outlined in the 'Fees' section of the Cicis franchise agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ounts necessary to reimburse us for our reasonable out-of-pocket costs and expenses associated with renewing your right to own and operate your Restaurant, including legal and accounting fees.
- (8) You and your Owners must execute a general release of any and all claims, however and whenever arising, against us, our affiliates, and our and their related parties; and
- (9) You must comply with our then-current qualification and training requirements.
4. FEES
- A. Initial Franchise Fee. You will pay us, on your execution of this Agreement, an initial franchise fee in the amount shown on Attachment A or Attachment A-1, as applicable. The initial franchise fee, when paid, will be deemed fully earned and nonrefundable in consideration of the administrative and other expenses we incurred in granting the license hereunder and for our lost or deferred opportunity to grant such license to any other party.
- B. Initial Training Fee. You will pay us, on your execution of this Agreement, a fully earned, nonrefundable training fee in the amount shown on Attachment A in consideration of our allowing you and your designees to participate in our initial training program as described in this Agreement.
- C. Royalty Fee; Royalty Report. During the Term of this Agreement, you will pay us, as partial consideration for the rights herein granted, a continuing weekly Royalty Fee (the "Royalty Fee") of 5% of
your Restaurant's Net Sales if your Restaurant is a Cicis Buffet Restaurant. However, if your Restaurant is a Cicis To Go Restaurant, you will pay us, as partial consideration for the rights herein granted, a continuing weekly Royalty Fee of 6% of your Restaurant's Net Sales. The Royalty Fee will be due and payable each week based on your Restaurant's Net Sales for the preceding week and will be paid to us via EFT (defined below) or such other means we specify from time to time. We will determine from time to time the start and end day of the week for purposes of calculating the Royalty Fee and the day of the week on which payment of the Royalty Fee is due. If the date on which such payments would otherwise be due is not a business day, then payment will be due on the next business day.
- D. Technology and Support Fee. During the Term of this Agreement, you will pay us, or a serviceprovider we designate (which may be us or our affiliate) a fee in the amount of $100 per month for your right to use certain technology that we mandate and make available for use in the operation of your Restaurant from time to time ("Technology and Support Fee").
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the fees outlined in Section 4 of the franchise agreement include the initial franchise fee, initial training fee, royalty fee, and technology and support fee. The initial franchise fee is specified in Attachment A or A-1 of the franchise agreement. This fee is nonrefundable once paid and is considered fully earned by Cicis to cover administrative and other expenses related to granting the franchise license, as well as the lost opportunity to grant the license to another party. The initial training fee, also found in Attachment A, is nonrefundable and covers the cost of participating in Cicis' initial training program.
The royalty fee is an ongoing weekly fee based on a percentage of the restaurant's net sales. For a Cicis Buffet Restaurant, the royalty fee is 5% of net sales, while for a Cicis To Go Restaurant, it is 6% of net sales. This fee is paid weekly via EFT or another method specified by Cicis. The FDD dictates that Cicis determines the start and end day of the week for calculating the royalty fee, as well as the day the payment is due. If the payment due date falls on a non-business day, the payment is due on the next business day.
In addition to the fees outlined above, Cicis franchisees are also required to make marketing contributions. Franchisees must contribute 5% of their restaurant's net sales to the Cicis marketing fund. They are also required to spend at least 1% of their restaurant's net sales on local marketing programs that have been approved by Cicis. If the restaurant is located in an area covered by a marketing cooperative, the franchisee must contribute the amount required by the cooperative.