What financial statements must a Cicis developer provide to the franchisor on a quarterly basis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree, during the Term, to maintain records regarding your activities in connection with the exercise of the Development Rights and to provide us with the following records and reports:
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- within 10 days after the end of each month during the Term, you must send us a report of your business activities during that month, including information about your efforts to find sites for Restaurants in the Development Area and the status of development and projected opening for each Restaurant under development in the Development Area;
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- within 30 days after the end of each calendar quarter, you must provide us with a balance sheet and profit and loss statement for you and your Affiliates covering that quarter and the year-to-date, and an updated balance sheet for each person or entity signing the Guaranty; and
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- such other data, reports, information, financial statements, and supporting records as we request from time to time.
If you fail to submit, the foregoing information or report required by us we may, after first providing written notice and a reasonable opportunity to cure (which need not exceed 10 days), assess a reasonable data collection fee for so long as the information or report remains outstanding. Our assessment and collection of the data collection fee will be in addition to all other rights and remedies we have.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, as a developer, you must provide specific financial statements to Cicis on a quarterly basis. Within 30 days after the end of each calendar quarter, you are required to submit a balance sheet and a profit and loss statement. These financial documents must cover you and your affiliates for that quarter and the year-to-date.
In addition to the quarterly financial statements for the developer and their affiliates, Cicis also requires an updated balance sheet for each person or entity signing the Guaranty. This ensures that Cicis has a comprehensive view of the financial health of all parties involved in the development agreement.
Failure to provide the required information may result in a data collection fee. Cicis will provide written notice and a reasonable opportunity to correct the deficiency, which need not exceed 10 days. If the information remains outstanding, Cicis may assess this fee, which is in addition to any other rights and remedies they may have. This highlights the importance of adhering to the reporting requirements to avoid additional costs and potential repercussions.