If Cicis imposes a maximum price, what is the highest price a franchisee can charge?
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 has the discretion to set maximum prices for products and services offered at its restaurants. If Cicis sets a maximum price, a franchisee can charge any price up to and including that designated maximum. The FDD also clarifies that Cicis can set both maximum and minimum prices for the same product or service, and these prices can be the same if Cicis chooses.
For a prospective franchisee, this means that Cicis retains control over pricing, which could impact profitability. If Cicis sets a maximum price that is too low, franchisees may struggle to cover their costs and generate a reasonable profit. Conversely, if no maximum or minimum price is set, Cicis may require compliance with an advertising policy that aligns advertised prices with their suggested retail price.
However, franchisees are not prohibited from selling products or services above or below the suggested retail price unless Cicis imposes a maximum or minimum price. This provides some flexibility for franchisees to adjust prices based on local market conditions and competitive pressures, as long as they adhere to Cicis's advertising policies and any set maximum or minimum prices.
It is important for potential franchisees to understand Cicis's pricing policies and how they may impact their ability to set prices and compete in their local market. Franchisees should discuss these policies with Cicis and existing franchisees to fully understand the potential implications.