What is the general monthly marketing contribution obligation for Cicis franchisees?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing fund: The Company's franchises and corporate owned restaurants each generally contribute the greater of a set amount, per the individual franchise agreement, or approximately 5% of sales per month as a marketing contribution in accordance with their respective franchise agreements. Marketing contributions and expenses are tracked separately from other activities. These contributions received are included in cash and cash equivalents—marketing fund and accounts receivable—marketing fund in the combined balance sheets. Any amounts not used in a fiscal year are carried over to the succeeding year and shown as a deferred liability. Amounts used in excess of marketing contributions would be recognized as an expense within advertising costs on the combined statements of income.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees are generally required to contribute to the marketing fund. The contribution is the greater of a set amount, as defined in the individual franchise agreement, or approximately 5% of sales per month. This contribution is in accordance with the terms outlined in their respective franchise agreements.
The marketing contributions are tracked separately from other financial activities within Cicis. These funds are included in the company's cash and cash equivalents designated for the marketing fund, as well as in accounts receivable specifically for the marketing fund, as reflected in the combined balance sheets. Any marketing funds that are not utilized during a fiscal year are carried over to the subsequent year and are accounted for as a deferred liability.
If Cicis uses more funds than the contributions received, the excess is recognized as an expense within advertising costs on the combined statements of income. This ensures that all marketing-related financial activities are transparently accounted for in the company's financial statements.