What is the Cicis franchisee's obligation regarding remodeling and refreshing the Restaurant prior to reopening under the Reopen Incentive Program Addendum?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
, the "Franchise Agreement"). The Effective Date of this Addendum is the date on which we sign below. Capitalized terms used but not defined in this Addendum have the meanings given them in the Franchise Agreement. For valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
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- Restaurant History. The Restaurant identified in the Franchise Agreement was formerly operated as a Cicis Restaurant by you, your affiliate, or a third party unaffiliated with you and was permanently closed or has been temporarily closed for an extensive period. The franchise agreement that previously governed the owner's operation of the Restaurant has been terminated. You and we have entered into the Franchise Agreement to govern your ownership and operation of the previously closed Restaurant from and after the Effective Date.
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- Reopening of the Restaurant. You agree that you will, at your expense, take the actions described on Attachment A hereto to remodel and refresh the Restaurant (the "Refresh Obligations") prior to reopening the Restaurant, and you will complete the Refresh Obligations and reopen the Restaurant for regular business in accordance with the Franchise Agreement by no later than the Reopening D
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a franchisee participating in the Reopen Incentive Program Addendum is obligated, at their own expense, to remodel and refresh the restaurant before reopening. These actions are detailed in Attachment A of the addendum and are referred to as the "Refresh Obligations." The franchisee must complete these Refresh Obligations and reopen the restaurant for regular business by the Reopening Deadline, which is also specified in Attachment A.
This requirement ensures that the reopened Cicis restaurant meets current brand standards and provides an appealing environment for customers. By requiring the franchisee to bear the costs of remodeling and refreshing, Cicis maintains consistency across its locations without directly funding the improvements for re-entering franchisees.
In exchange for undertaking these Refresh Obligations, Cicis offers certain incentives, such as a reduction of the initial franchise fee to $5,000, provided the franchisee remains in good standing. Good standing is defined as compliance with all material obligations under the Franchise Agreement and other agreements with Cicis, with Cicis retaining sole discretion to determine what constitutes a material obligation. This incentive structure encourages franchisees to quickly bring previously closed locations back into operation while adhering to Cicis's standards.
Prospective franchisees should carefully review Attachment A of the Reopen Incentive Program Addendum to fully understand the scope and cost of the required Refresh Obligations. They should also clarify with Cicis what specific criteria will be used to assess "good standing" to ensure they can maintain eligibility for the reduced initial franchise fee and other potential benefits.