What is the Cicis franchisee's obligation regarding payments via electronic funds transfer?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless we notify you otherwise from time to time, all payments due to us under this Agreement will be paid via electronic funds transfer ("EFT").
You agree to sign all documents necessary to permit us to withdraw funds from your designated bank account by EFT in the amounts due under this Agreement from time to time, at the time or times that such amounts become due and payable under the terms of this Agreement.
If you fail to timely provide us with a Net Sales Report, then we may process an EFT for the subject week based on the most recent Net Sales Report you provided to us; provided that if it is subsequently determined (i) that the actual amount of the fee due was more than the amount of the EFT, then we will be entitled to withdraw additional funds through EFT from your designated bank account for the difference; or (ii) that the actual amount of the fee due was less than the amount of the EFT, then we will credit the excess amount to the payment of your future obligations.
Should any EFT not be honored by your bank for any reason, you will be responsible for the payment that was the subject of the EFT, plus our then-current service charge, which may include any service charge due to the bank.
If any payments are not received when due, we may charge interest in accordance with Section 4.F above.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees are generally required to make all payments due to Cicis via electronic funds transfer (EFT). Unless Cicis notifies the franchisee otherwise, this is the standard payment method.
As a Cicis franchisee, you must sign all necessary documents to authorize Cicis to withdraw funds from your designated bank account via EFT. These withdrawals will cover the amounts due under the Franchise Agreement, and they will be taken at the times when those amounts become due. This ensures that Cicis receives timely payments for royalties, marketing contributions, and other fees.
If a franchisee fails to submit a Net Sales Report on time, Cicis may process an EFT based on the most recent Net Sales Report provided. If the actual amount due differs from the EFT amount, Cicis will either withdraw additional funds or credit the excess to future obligations. If an EFT is not honored by the franchisee's bank for any reason, the franchisee is responsible for the original payment, plus any service charges incurred by Cicis, including bank fees. Interest may also be charged on late payments as per the agreement.