When is the Indemnification fee due for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnification | Amount of damages suffered | On demand | You must indemnify, defend, and hold us, our affiliates, and our and affiliates' respective owners, directors, managers, officers, employees, agents, successors, and assignees harmless against all third party claims arising from the development or operation of your Restaurant (or by your employees, or others that arise from your employment practices). |
Source: Item 6 — OTHER FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the indemnification fee is due 'on demand'. The amount of the fee is the 'amount of damages suffered'. Cicis requires franchisees to indemnify, defend, and hold harmless Cicis, its affiliates, and their respective owners, directors, managers, officers, employees, agents, successors, and assignees. This protection extends against all third-party claims arising from the development or operation of the franchisee's restaurant, including claims made by the franchisee's employees or others related to the franchisee's employment practices.
In practical terms, this means that if a customer or employee sues Cicis because of something that happened at your franchise location, you, as the franchisee, are responsible for covering Cicis's legal costs and any damages they are required to pay. This could include a wide range of incidents, from slip-and-fall accidents to employment disputes. The fee is not a fixed amount but depends on the actual damages Cicis incurs.
The 'on demand' payment term means Cicis can request immediate payment for these costs. This differs from some other fees, like the Technology and Support Fee, which are billed monthly. Franchisees should be prepared to handle potentially significant and unexpected expenses related to indemnification claims.
This type of indemnification clause is standard in franchise agreements. It protects the franchisor from liabilities arising from the franchisee's business operations. However, the open-ended nature of the 'amount of damages suffered' and the 'on demand' payment term mean franchisees must be diligent in managing risks and maintaining adequate insurance coverage to mitigate potential financial exposure.