factual

Does Cicis have to impose a maximum or minimum price to control the prices a franchisee advertises?

Cicis Franchise · 2025 FDD

Answer 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 option to set maximum or minimum prices for products and services at its restaurants. If Cicis sets these price limits, franchisees must adhere to them, but they can charge any price within the established range.

However, if Cicis does not impose specific maximum or minimum prices, they may implement an advertising policy. This policy could prevent franchisees from advertising prices that differ from Cicis's suggested retail price. Even with an advertising policy in place, franchisees are generally allowed to sell products or services above or below the suggested retail price, unless Cicis has set a maximum or minimum price.

This pricing and advertising structure provides Cicis with flexibility in managing brand consistency and pricing strategies. Franchisees need to be aware of Cicis's right to control pricing through maximum or minimum price settings or advertising policies. It is important for prospective franchisees to understand how these policies could impact their ability to set prices and run promotions at their Cicis restaurant.

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.