If Cicis conducts an on-site inspection of a proposed location, who is responsible for the costs and expenses?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, but will not be required to, conduct an on-site inspection of your proposed location. Should we elect to do so, we will not charge you a fee for conducting the inspection, but you must reimburse all costs and expenses we incur in connection with the inspection. If you choose to continue to pursue a proposed location and we determine that it is appropriate to conduct another on-site inspection, we reserve the right to charge a fee for, and you will reimburse us the costs and expenses associated with, each such inspection.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the responsibility for costs associated with on-site location inspections depends on the number of inspections conducted. For the initial on-site inspection, Cicis does not charge a fee, but the franchisee must reimburse Cicis for all costs and expenses incurred during the inspection.
However, if the franchisee decides to continue pursuing a location and Cicis deems another on-site inspection necessary, Cicis reserves the right to charge a fee for each subsequent inspection. In addition to the fee, the franchisee is also responsible for reimbursing Cicis for all costs and expenses associated with these additional inspections.
This means that while the first inspection is 'free' in terms of a direct fee from Cicis, the franchisee still bears the financial burden of the associated costs. For any subsequent inspections, the franchisee is responsible for both a fee and the associated costs, which could include travel, lodging, and personnel expenses for Cicis representatives. This policy incentivizes franchisees to carefully vet locations before requesting inspections, as repeated inspections can become costly.