What governing documents dictate the amounts Cicis franchisees must contribute to a Cooperative?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) If your Restaurant is located within an area that is or becomes covered by a Cooperative (defined below), you must contribute to the Cooperative all amounts required by the Cooperative's
governing documents ("Minimum Cooperative Contribution") and any additional amounts authorized by a vote of the Cooperative's members and approved by us ("Excess Cooperative Contribution"). Your Minimum Cooperative Contribution may be applied toward your Local Marketing Spend except where and to the extent used by the Cooperative on programs that, as described above, do not satisfy the Local Marketing Spend. Excess Cooperative Contributions may not be applied to offset the Local Marketing Spend.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee's restaurant is located in an area covered by a marketing cooperative, the franchisee must contribute to that cooperative. The specific amounts that Cicis franchisees are required to contribute to the Cooperative are dictated by the Cooperative's governing documents. These required contributions are referred to as the "Minimum Cooperative Contribution."
In addition to the Minimum Cooperative Contribution, franchisees may also be required to contribute "Excess Cooperative Contribution". This Excess Cooperative Contribution consists of any additional amounts authorized by a vote of the Cooperative's members and approved by Cicis.
The Minimum Cooperative Contribution can be applied toward the franchisee's Local Marketing Spend, except when the Cooperative uses the funds on programs that do not satisfy the Local Marketing Spend requirements. However, Excess Cooperative Contributions cannot be used to offset the Local Marketing Spend. Cicis retains the discretion to aggregate or re-allocate a franchisee's Fund Contributions, Local Marketing Spend, and Minimum Cooperative Contributions to various marketing vehicles.