Are the initial fees described in Item 5 of the Cicis FDD refundable under any circumstances?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
M 5 INITIAL FEES**
All fees described in this Item 5 are uniform for all franchisees and are not refundable under any circumstances. Except for some amounts that are payable to JMC as described below, all other fees described in this Item 5 are payable in a lump sum.
Initial Franchise Fees: When you sign the Franchise Agreement, you must pay us an initial franchise fee of $30,000 for a Cicis Buffet Restaurant and $15,000 for a Cicis To Go Restaurant (subject to reduction under current incentive programs described below). The initial franchise fee is payable in a lump sum and is uniformly imposed (although we reserve the right to negotiate it at our discretion).
Equipment, Inventory and Related Purchases: You must purchase from our affiliate, JMC, the following items that you will need to develop your Cicis Restaurant and to prepare it for opening:
- Initial Inventory: Your initial inventory of special recipe products (which include, among other things, cheese, sauces, dressings, dough ingredient packs, mixes, toppings, meats, flour, icing and specialty sugar) will range from $9,031 to $15,040 depending on the quantity of initial inventory you purchase. The foregoing amount is payable in lump sum upon the issuance of invoice by JMC.
- Smallwares: If you develop a Cicis Buffet Restaurant, the current initial package of smallwares costs $16,000 and is payable in two equal installments. The first installment is due and payable when you place the order and the second installment is payable before the opening of your Cicis Buffet Restaurant.
- Initial Equipment, Furniture, Fixture, Supplies & Décor: If you develop a Cicis Buffet Restaurant, your initial equipment (including the point-of-sale system), fixture, supplies (including beverages), and décor items needed to meet our System Standards (as defined in Item 8 below) will range from $162,752 to $226,000 depending on the size, configuration and condition of the premises at which your Cicis Buffet Restaurant will be developed. If you develop a Cicis To Go Restaurant, the package of these items will range from $87,586 to $114,473, also depending on the size, configuration and condition of the premises. The foregoing amount is payable in two equal installments. The first installment is due and payable when you place the order and the second installment is payable before the opening of your Cicis Restaurant.
Initial Training Fee: We do not charge an initial training fee for the first and second Cicis Restaurants you or your affiliates develop. If, based on your operating history and our assessment of your ability to train your employees for the third and each subsequent Cicis Restaurant you or your affiliates develop, we determine that you and your personnel are required to attend our training program for the third or any subsequent Cicis Restaurant, you will be required to pay us an initial training fee of $2,500. If charged, the initial training fee will be due and payable, in a lump sum, on your execution of the Franchise Agreement.
Inspection Fee: You must pay us the following inspection fee in connection with the development of your Cicis Restaurant:
- Fee for Second On-Site Inspection of Proposed Locations: We may, but are not required to, conduct on-site inspections of the construction of your Cicis Restaurant. If we elect to do so, we will not charge you a fee for inspecting a proposed location for the first time. However, if you choose to pursue a proposed location and we determine that it is appropriate to conduct another on-site inspection, you must pay us an inspection fee, which we estimate will be in the range of $200 to $1,500 (depending on the distance of your location from our corporate headquarters). This amount will be due and payable upon delivery of our invoice.
- Fee for On-Site Construction Inspection: We may, but are not required to, conduct on-site inspections of the construction of your Cicis Restaurant. If we elect to do so, you must pay us a reasonable fee which we estimate will be in the range of $200 to $1,500 (depending on the distance of your location from our corporate headquarters). This amount will be due and payable upon delivery of our invoice.
Source: Item 5 — INITIAL FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the initial fees outlined in Item 5 are generally non-refundable. This means that once a prospective franchisee pays these fees, they typically cannot get them back, regardless of whether they proceed with opening a Cicis restaurant. This policy applies uniformly to all franchisees, although Cicis retains the right to negotiate the initial franchise fee at its discretion.
Specifically, the initial franchise fee is $30,000 for a Cicis Buffet Restaurant and $15,000 for a Cicis To Go Restaurant. There is also a development fee associated with Area Development Agreements, calculated by multiplying the number of restaurants to be opened by $15,000, which is also nonrefundable, though it can be applied towards the initial franchise fees for each location. Other fees, such as those for on-site inspections of proposed locations (estimated between $800 and $3,025) and on-site construction inspections (estimated between $800 and $3,025), along with potential attorney's fees up to $4,000 for lease rider negotiations, are also non-refundable once incurred.
However, Cicis does offer incentive programs that can reduce the initial franchise fee. For instance, under the Development Incentive Program, the initial franchise fee can be reduced to $10,000 per restaurant if the franchisee enters into a new 5-unit Area Development Agreement. Additionally, the Veteran's Incentive Program waives the development fee and initial franchise fee for qualified veterans. The Reopen Incentive Program reduces the initial franchise fee to $5,000 for franchisees who agree to reopen a closed Cicis Restaurant. These incentive programs are voluntary and subject to change or termination by Cicis.
Prospective franchisees should carefully consider the non-refundable nature of the initial fees and the conditions of any incentive programs before signing any agreements. It is crucial to fully understand the financial commitment and risks involved in opening a Cicis franchise, as these initial fees represent a significant upfront investment that is generally not recoverable.