When is the initial franchise fee for a Cicis franchise due?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Initial Franchise Fee. You will pay us, on your execution of this Agreement, an initial franchise fee in the amount shown on Attachment A or Attachment A-1, as applicable. The initial franchise fee, when paid, will be deemed fully earned and nonrefundable in consideration of the administrative and other expenses we incurred in granting the license hereunder and for our lost or deferred opportunity to grant such license to any other party.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the initial franchise fee is due upon the execution of the Franchise Agreement. The amount of the initial franchise fee is specified in Attachment A or A-1 of the agreement. Once paid, this fee is considered fully earned and nonrefundable by Cicis, acknowledging the administrative and other expenses Cicis incurs in granting the franchise license. It also compensates Cicis for the lost opportunity to grant the license to another party.
This means that a prospective Cicis franchisee must be prepared to pay the initial franchise fee at the time they sign the franchise agreement. This fee is nonrefundable, regardless of whether the franchisee ever opens a Cicis restaurant. The franchisee should carefully review Attachment A or A-1 to understand the exact amount of the initial franchise fee required for their specific location or type of franchise (Buffet or To-Go).
In the franchise industry, it is standard practice for the initial franchise fee to be paid upon signing the agreement. This fee covers the franchisor's initial costs in setting up the franchisee and granting them the rights to operate under the brand. The nonrefundable nature of the fee is also typical, as it compensates the franchisor for their time and resources spent evaluating and onboarding the franchisee.