How is the Cicis Fund Contribution calculated?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
in accordance with Section 4.H. of this Agreement.
- (2) You will comply with all requirements and specifications we establish, and use all designated vendors, for each Marketing Program.
- (3) We may, from time to time, provide you, without charge, certain marketing pieces regarding the Cicis® franchise opportunity. You must display those materials in your Restaurant in accordance with our direction.
- B. Marketing Contributions and Expenditures. In addition to your participation in the Marketing Programs as described above, you agree to the following:
- (1) You agree to contribute 5% of your Restaurant's Net Sales to the Fund (defined below) ("Fund Contribution"). The Fund Contribution is calculated in the same manner, and will be due and payable at the same time, as the Royalty Fee.
- (2) In addition to the Fund Contribution, you must spend at least 1% of your Restaurant's Net Sales on approved marketing programs for your Restaurant in the Protected Area ("Local Marketing Spend"). We describe in the Manuals from time to time certain expenditures that will not satisfy the Local Marketing Spend unless you obtain our prior written agreement as to specific proposed expenditures.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees are required to contribute to a marketing fund. This Fund Contribution is calculated as 5% of the Restaurant's Net Sales. The contribution is calculated and due at the same time as the Royalty Fee.
In addition to the Fund Contribution, franchisees must also spend at least 1% of their Restaurant's Net Sales on local marketing programs that have been approved. If the Restaurant is within an area covered by a Cooperative, the franchisee must contribute to that Cooperative as well. The amount is determined by the Cooperative's governing documents.
Cicis retains the right to aggregate or re-allocate the Fund Contributions, Local Marketing Spend, and Minimum Cooperative Contributions as they see fit. This means that while franchisees are required to contribute specific percentages of their net sales, Cicis has the discretion to manage and distribute these funds across various marketing channels and initiatives.