If Cicis does not impose a maximum or minimum price, can they require compliance with an advertising policy?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, at our discretion, set a maximum or minimum price that you may charge for products and services offered by your Cicis Restaurant. If we impose such a maximum or minimum price for any product or service, you may charge any price for the product or service up to and including our designated maximum price or down to and including our designated minimum price. The designated maximum and minimum prices for the same product or service may, at our option, be the same. For any product or service for which we do not impose a maximum or minimum price, we may require you to comply with an advertising policy adopted by us which will prohibit you from advertising any price for a product or service that is different than our suggested retail price. Although you must comply with any advertising policy we adopt, you will not be prohibited from selling any product or service at a price above or below the suggested retail price unless we impose a maximum price or minimum price for such product or service.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 44–45)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis can require franchisees to comply with an advertising policy even if they do not set maximum or minimum prices. Specifically, if Cicis does not impose a maximum or minimum price for a product or service, they may require franchisees to adhere to an advertising policy. This policy can prohibit franchisees from advertising prices that differ from Cicis's suggested retail price.
However, even with such an advertising policy in place, franchisees are generally not prohibited from selling products or services at prices above or below the suggested retail price, unless Cicis has established a maximum or minimum price for those items. This means that while Cicis can influence how franchisees advertise their prices, they do not necessarily control the actual prices charged to customers if no maximum or minimum is set.
For a prospective Cicis franchisee, this policy offers some flexibility in pricing strategies. While advertising must align with Cicis's suggested retail prices when no price ceiling or floor exists, the franchisee retains the ability to adjust prices as needed to respond to local market conditions or competitive pressures, as long as they do not advertise those deviations. It's crucial for franchisees to understand and comply with the advertising policy to avoid any conflict with Cicis while still managing their restaurant's profitability.