What fees are potentially reduced for Cicis franchisees participating in the Development Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
eements, at least five (5) Cicis Pizza Restaurants. In light of your acquisition of the Development Rights and your agreement to remain in good standing (as defined below), we have agreed to allow you to participate in our Development Incentive Program (the "Program") with respect to the Development Agreement and Franchise Agreements that you or your affiliates execute pursuant to the Development Agreement from and after the Effective Date of this Addendum (the "Qualifying Franchise Agreements"). We may revoke your participation in the Program if, at any time, we determine that you no longer qualify to participate.
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- Reduction of Development and Initial Franchise Fees. Section 3 of the Development Agreement is supplemented and amended by adding the following to the end of the Section:
While you are approved to participate in the Program and provided you and your affiliates remain in good standing, we agree that the Development Fee will be reduced to $10,000 times the total number of Restaurants to be developed hereunder, and the Initial Franchise Fee under each Qualifying Franchise Agreement shall be reduced to $10,000. We reserve the right to revoke the foregoing reductions at any time you are no longer approved to participate in the Program or you cease to be in good standing, in which case, you will pay us the balance of the full Development Fee and Initial Franchise Fees which, absent the foregoing reductions, are required under the Development Agreement and Qualifying Franchise Agreements, as applicable. "Good Standing" means that you and your affiliates, as applicable, are in compliance with all material obligations under the Development Agreement (including the Development Schedule), all Franchise Agreements between us and you or them, whether or not executed pursuant to the Development Agreement, and all other agreements between us and you or your affiliates. 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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- Amendment of Qualifying Franchise Agreements. As long as you are approved to participate in the Program (as we determine in our sole discretion), as each Qualifying Franchise Agreement is executed, we and you or your affiliate executing the agreement will also execute an amendment to the agreement in the form attached as Attachment A hereto.
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- Construction; Execution. This Addendum forms an integral part of and is incorporated into the Development Agreement and represents the sole agreement between the Parties with respect to the matters set forth herein. Except as supplemented and amended herein, the Development Agreement remains in full force and effect. This Addendum may be executed in several counterparts which, taken together, constitute a single document.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees participating in the Development Incentive Program may receive reductions on the Development Fee, the Initial Franchise Fee, and Royalty Fees. Specifically, the Development Fee can be reduced to $10,000 times the total number of restaurants to be developed, and the Initial Franchise Fee can be reduced to $10,000 under each Qualifying Franchise Agreement. In some instances, Cicis may waive the Development Fee entirely.
Additionally, franchisees in the Development Incentive Program may benefit from a modification of Royalty Fees. For net sales generated through the first anniversary of the restaurant's opening date, the Royalty Fee will be calculated at 3% of those net sales.
It is important to note that these reductions and modifications are contingent upon the franchisee remaining approved to participate in the program and maintaining good standing with Cicis. Cicis retains the right to revoke these incentives if the franchisee no longer meets these criteria, in which case the franchisee will be responsible for paying the full Development Fee, Initial Franchise Fees, and Royalty Fees as outlined in the Development Agreement and Franchise Agreements.