What happens if a Cicis franchisee fails to comply with the requirements and specifications established for each Marketing Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
(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 must comply with all requirements and use designated vendors for each Marketing Program. The document outlines that Cicis may develop and administer marketing and sales promotion programs, including national, regional, or local programs and limited time offers (LTOs), designed to promote the collective success of all Cicis Restaurants. Franchisees are required to participate in these Marketing Programs at their own expense, adhering to the terms and conditions set by Cicis for each program.
For any mandatory LTOs, Cicis will ensure that all required products or ingredients are automatically shipped to the franchisee by a designated supplier within 10 days of the LTO announcement. However, if the franchisee places an order with the designated supplier within that 10-day period for the necessary products or ingredients in sufficient quantities, automatic shipment will not occur. If the franchisee orders less than the required amount, the designated supplier will automatically ship the remaining balance. The franchisee is responsible for all costs and expenses associated with purchasing or receiving these automatically supplied products or ingredients.
While the FDD excerpt specifies the franchisee's obligations regarding participation and compliance with Marketing Programs, it does not explicitly state the consequences of failing to comply with the requirements and specifications established for each Marketing Program. A prospective franchisee should seek clarification from Cicis regarding the specific penalties or corrective actions that may be imposed for non-compliance with these marketing requirements.