Is a Cicis franchisee permitted to conduct a public offering of their securities?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
paid at closing | |
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee – Area Development 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 | |
| Securities Offering Fee | $3,000 or any greater amount necessary to reimburse us for our reasonable costs and expenses in reviewing the proposed securities offering | When billed | We must give our consent to any private offering of your securities. A public offering of your securities is not permitted. |
| Inspection Fee | $500 for initial inspection and $750 for each re-inspection, plus actual cost of corrective action, including other expenses incurred by us or our designee in connection with any inspection or rectification of deficiencies | On demand | If a quality assurance inspection reveals deficiencies you fail to correct, we may (but need not) correct them for you and charge a fee for our expenses in taking the corrective action (including, without limitation, any necessary re inspection). |
| Supplier/Product Testing Fee | Actual cost of inspection (if applicable) and testing cost, estimated to be $500 - $1,000 per vendor/product | When billed | You (or your supplier) may have to pay an independent laboratory or us for the cost of a test on samples of your products and supplies if we have not previously approved the supplier of the item or if the sample fails to conform to our specifications. You must also pay the costs of inspection and testing (including our administrative costs attributable to both) under our supplier ap |
Source: Item 6 — OTHER FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a franchisee is not permitted to conduct a public offering of their securities. However, Cicis must give consent to any private offering of a franchisee's securities.
If a Cicis franchisee seeks to conduct a private offering, they will incur a "Securities Offering Fee" of $3,000, or any greater amount necessary to reimburse Cicis for their reasonable costs and expenses in reviewing the proposed securities offering. This fee is due when billed.
This policy is not uncommon in franchising, as franchisors want to maintain control over who invests in their brand and ensure that any securities offerings are conducted in a way that protects the brand's reputation and complies with applicable laws. Franchisees should factor this fee and the requirement for franchisor consent into their financial planning if they anticipate seeking outside investment.