What is the formula for calculating the Development Fee for a Cicis development agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
f the Site, you or an Affiliate we approve must sign our then-current form of Franchise Agreement and related documents, the terms of which may differ substantially from the terms contained in the form of Franchise Agreement we are using to grant Franchises on the Effective Date, except that the Royalty rate will not exceed 5% of Gross Sales for Cicis Buffet Restaurants or 6% of Gross Sales for Cicis To Go Restaurants, and the Initial Franchise Fee will be $30,000 for Cicis Buffet Restaurant or $15,000 for Cicis To Go Restaurants. Each Franchise Agreement will govern the development and operation of the Restaurant at the accepted Site identified therein.
3. DEVELOPMENT FEE.
On your execution of this Agreement and in consideration of the grant of the Development Rights, you must pay us a nonrecurring, nonrefundable, and fully earned (on execution of this Agreement) development fee in an amount equal to $15,000 times the tota
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Development Fee is calculated by multiplying $15,000 by the total number of restaurants to be developed under the agreement. This fee is nonrecurring, nonrefundable, and fully earned by Cicis upon the execution of the Development Agreement.
For each restaurant developed under the agreement, Cicis will apply $15,000 of the Development Fee as a credit towards the Initial Franchise Fee for that restaurant. The franchisee is responsible for paying any remaining balance of the Initial Franchise Fee when signing the Franchise Agreement for each location.
However, Cicis is not required to refund any portion of the Development Fee or apply any credit that exceeds the amounts specified or the total amount of the Development Fee. This means that if the Initial Franchise Fee is less than $15,000, the franchisee will not receive the difference in cash, and any unused credit will be forfeited. The Development Fee is compensation to Cicis for granting the development rights to the franchisee.