Where in the Cicis Franchise Agreement and related addenda can information about fees be found?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
ITEM 5 INITIAL FEES
All fees described in this Item 5 are uniform for all franchisees and are not refundable under any circumstances. Except for some amounts that are payable to JMC as described below, all other fees described in this Item 5 are payable in a lump sum.
Initial Franchise Fees: When you sign the Franchise Agreement, you must pay us an initial franchise fee of $30,000 for a Cicis Buffet Restaurant and $15,000 for a Cicis To Go Restaurant (subject to reduction under current incentive programs described below). The initial franchise fee is payable in a lump sum and is uniformly imposed (although we reserve the right to negotiate it at our discretion).
Equipment, Inventory and Related Purchases: You must purchase from our affiliate, JMC, the following items that you will need to develop your Cicis Restaurant and to prepare it for opening: [Item 5: INITIAL FEES]
- Development Incentive Program: If you enter into a new 5-unit Area Development Agreement and remain in good standing under all agreements with us, the initial franchise fee you pay under each Franchise Agreement you sign pursuant to the Area Development Agreement will be reduced to $10,000, and the development fee will be $50,000. We will then apply the development fee, in $10,000 increments, in full satisfaction of the initial franchise fee due under each Franchise Agreement you sign pursuant to the Area Development Agreement. To participate in this program, you must sign and satisfy the conditions under the Development Incentive Program Addendum attached as Exhibit D-1 to this Disclosure Document when you sign the Area Development Agreement or, as applicable, the Franchise Agreement.
- Veteran's Incentive Program: If you or your owners are active members of, or were honorably discharged from, the United States armed forces and remain in good standing under all agreements with us, then we will waive your obligation to pay the development
fee under any new Area Development Agreement and the obligation to pay an initial franchise fee under any new Franchise Agreement. To participate in this program, you must sign and satisfy the conditions under the Veteran's Incentive Program Addendum attached as Exhibit D-2 to this Disclosure Document when you sign the Area Development Agreement or, as applicable, the Franchise Agreement.
• Reopen Incentive Program: Under this program, if you agree to reopen a closed Cicis Restaurant, your initial franchise fee under the new Franchise Agreement for that Cicis Restaurant will be reduced to $5,000. If you qualify for the Reopen Incentive Program, you must sign and satisfy the conditions under the Reopen Incentive Program Addendum in the form attached as Exhibit D-3 to this Disclosure Document when you sign the Franchise Agreement for the applicable Cicis Restaurant.
[Item 6: OTHER FEES]
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 5% of Net Sales for a Cicis Buffet Restaurant; 6% of Net Sales for a Cicis To Go Restaurant (subject to reduction for participation in current incentive programs). | The day of the week we specify (currently, Thursday) | See Notes 2, 3, 4, and 5 |
| Non-Compliance Fee | $250 per failure to comply with the Franchise Agreement, plus, your royalty fee will increase by one (1) percentage point until you have cured all deficiencies | On demand, the day after non- compliance occurs | Payable only if you are in default of your obligations under the Franchise Agreement. |
| Technology and Support Fee | $100 per month | When billed (currently, first day of the month) | The Technology and Support Fee is in addition to all direct out-of-pocket costs you must otherwise incur under the terms of the Franchise Agreement or the Manual to acquire and maintain the required computer system and technology. |
| Type of Fee(1) | Amount | Due Date | Remarks |
| --- | --- | --- | --- |
| Cost of Updating Cicis Approved POS System | $1,200 annually | When billed | Your total cost of updating Cicis Approved POS System will be approximately $3,000 to $4,800, annually, of which $1,200 shall be payable to us or our affiliates |
| Type of Fee(1) | Amount | Due Date | Remarks |
| ---------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| On- Site Opening Assistance | Estimated to be in the range of $800 to $3,025 (depending on the number of representatives we send to your Cicis Restaurant, the number of days during which we provide on-site opening assistance, and the location of your Cicis Restaurant) | When billed | We do not require you to reimburse us for the cost of providing on-site opening assistance for your and/or your affiliates' first or second Cicis Restaurant. However, for your and/or your affiliates' third or subsequent Cicis Restaurant, we may require you to pay or reimburse us for the expenses we incur to provide such assistance. |
| Interest | 5% per month or the maximum rate allowed by applicable law, whichever is less | On demand | We may charge you interest on all overdue amounts under both the Franchise Agreement between you and us (or our affiliates). |
| Training for Replacement or Successor Personnel | Up to $2,500 per replacement personnel | If applicable, before training | We have the right to charge a reasonable fee to train any replacement or successor Managing Owner (as defined in Item 15) or Operator (as defined in Item 15), which currently is $2,500 per person. If our trainers have to travel to provide the training, you must also pay for our trainers' airfare, plus other travel-related expenses we incur. |
| Additional & Remedial Training | We have the right to charge a fee for additional training, not to exceed $250 per day for each day of training that we determine is necessary. | Before training or when billed, at our discretion | Your Managing Owner, Operator, Managers, and other personnel we designate may have to attend additional training programs. Also, if you ask, or if we believe it is appropriate, we will (subject to availability) provide trained representatives to conduct on-site remedial training at your location. If our trainers have to travel to provide the training, you must also pay for our trainers' airfare, plus other travel-related expenses we incur. |
| Transfer Fee – Franchise Agreement | $7,500, plus our expenses, which we estimate to be between $500 - $1,000 | Submitted with transfer application or, in our discretion, paid at closing |
[Item 23: RECEIPTS]
E. EXECUTION OF FRANCHISE AGREEMENTS.
Simultaneously with signing this Agreement, you or an Affiliate we approve must sign and deliver to us a Franchise Agreement and related documents representing the first Franchise you are obligated to acquire under this Agreement. You or your approved Affiliate must thereafter open and operate a Restaurant according to the terms of that Franchise Agreement. Thereafter, once we have accepted a Site, and prior to signing a lease or to otherwise securing possession of 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.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–31)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, information regarding fees can be found in several sections. Item 5 details the initial fees, including the initial franchise fee of $30,000 for a Cicis Buffet Restaurant and $15,000 for a Cicis To Go Restaurant. It also mentions potential reductions under incentive programs. Item 6 outlines other fees such as the royalty fee, which is 5% of Net Sales for a Cicis Buffet Restaurant and 6% for a Cicis To Go Restaurant. Additionally, Item 23 discusses the execution of franchise agreements and related documents, noting that the royalty rate will not exceed 5% or 6% for the respective restaurant types and the initial franchise fee will be $30,000 or $15,000, respectively.
Item 6 provides a comprehensive table of other fees, including a non-compliance fee of $250 per failure, a technology and support fee of $100 per month, and the cost of updating the Cicis Approved POS System at $1,200 annually. It also lists potential on-site opening assistance costs ranging from $800 to $3,025, interest charges of 5% per month, training fees for replacement personnel up to $2,500, additional training fees not exceeding $250 per day, and a transfer fee of $7,500 plus expenses estimated between $500 and $1,000.
Furthermore, Item 5 describes various incentive programs that may affect the initial fees. The Development Incentive Program can reduce the initial franchise fee to $10,000 under certain conditions, while the Veteran's Incentive Program may waive the development fee and initial franchise fee for eligible veterans. The Reopen Incentive Program reduces the initial franchise fee to $5,000 for reopening a closed Cicis Restaurant. These various fees and potential incentives are crucial for prospective franchisees to understand the full financial obligations and opportunities associated with opening a Cicis franchise.