factual

What happens to the monies in the Cicis Marketing Fund if it is terminated?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (5) Although the Fund is intended to be of perpetual duration, we may terminate the Fund.

The Fund will not be terminated, however, until all monies in the Fund have been expended for marketing or promotional purposes or returned to all contributors, without interest, on the basis of their respective contributions.

Source: Item 22 — CONTRACTS (FDD pages 64–65)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, the Marketing Fund is intended to be of perpetual duration; however, Cicis may terminate the Fund. If the Cicis Marketing Fund is terminated, all monies in the fund must be expended for marketing or promotional purposes. Alternatively, the monies can be returned to all contributors without interest, based on their respective contributions.

This means that if Cicis decides to discontinue the Marketing Fund, franchisees who have contributed to the fund will either see the remaining money used for marketing efforts or receive a portion of their contributions back. The decision on how to distribute the funds rests with Cicis.

For a prospective franchisee, this clause provides some assurance that the contributions to the Marketing Fund will be used appropriately, even if the fund is terminated. It ensures that the money will either benefit the Cicis system through marketing or be returned to the franchisees who contributed. Franchisees should monitor the fund's activities and request the annual statement to stay informed about its financial status.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.