If Cicis sets a maximum price, can a franchisee charge less than that maximum price?
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 or minimum prices for products and services at its restaurants. If Cicis imposes a maximum price, franchisees can charge any price up to and including that maximum. This means a franchisee has the flexibility to set prices lower than the maximum price set by Cicis.
This pricing flexibility allows franchisees to respond to local market conditions and competitive pressures. For example, a franchisee in an area with lower cost of living or intense competition might choose to set prices below the maximum to attract customers. Conversely, if Cicis does not set a maximum or minimum price, the franchisee must comply with Cicis's advertising policy, which may restrict advertising prices that differ from the suggested retail price. However, even with the advertising policy, franchisees are not prohibited from selling above or below the suggested retail price unless a maximum or minimum price is in place.
It's important for prospective franchisees to understand Cicis's pricing policies and how they might impact profitability. Franchisees should discuss with Cicis the factors that go into setting maximum and minimum prices, as well as the advertising policies that apply when no maximum or minimum prices are set. Understanding these policies will help franchisees make informed decisions about pricing strategies and marketing efforts in their local markets.
In summary, while Cicis can set maximum prices, franchisees retain the ability to price their products and services competitively, provided they stay at or below the set maximum. This offers a degree of autonomy within the framework of the franchise agreement, allowing franchisees to adapt to their specific market conditions.