How is the Fund Contribution calculated for a Cicis restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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").
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees must contribute to the Marketing Fund. This Fund Contribution is 5% of the restaurant's Net Sales.
The Fund Contribution is calculated and due at the same time as the Royalty Fee. The Royalty Fee, as described elsewhere in the FDD, is a percentage of Net Sales that varies depending on the restaurant type. For a Cicis Buffet Restaurant, the Royalty Fee is 5% of Net Sales, while for a Cicis To Go Restaurant, it is 6% of Net Sales. Therefore, the Fund Contribution mirrors the payment schedule of the Royalty Fee, being due each week based on the restaurant's Net Sales for the preceding week.
In addition to the Fund Contribution, franchisees are also required to spend at least 1% of their restaurant's Net Sales on approved local marketing programs within their protected area. If the restaurant is within a Cooperative area, contributions to the Cooperative are also mandatory, with specific rules about how these contributions can be applied towards the Local Marketing Spend. Cicis retains the right to aggregate or re-allocate the Fund Contributions, Local Marketing Spend, and Cooperative contributions as they see fit.