Is the initial franchise fee for a Cicis restaurant payable in a lump sum?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
le 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.
Expense Reimbursement: You must reimburse us the following expenses we incur in connection with the development of your Cicis Restaurant:
- On-Site Inspection of Proposed Locations: If we conduct an on-site inspection of a proposed location for your Cicis Restaurant, you must reimburse the costs and expenses we incur in doing so, which we estimate will be between $800 and $3,025. This amount is 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 franchise fee is generally payable in a lump sum. Specifically, the initial franchise fee is $30,000 for a Cicis Buffet Restaurant and $15,000 for a Cicis To Go Restaurant. The FDD specifies that this fee is payable in a lump sum when you sign the Franchise Agreement. However, the initial franchise fee may be subject to reduction under current incentive programs.
There are a few incentive programs that could affect the initial franchise fee. For example, under the Development Incentive Program, if a franchisee enters into a new 5-unit Area Development Agreement and remains in good standing, the initial franchise fee is reduced to $10,000 per restaurant. Another is the Reopen Incentive Program, where the initial franchise fee is reduced to $5,000 if the franchisee agrees to reopen a closed Cicis Restaurant. Additionally, the Veteran's Incentive Program waives the initial franchise fee for qualified veterans.
It is important to note that while the initial franchise fee is typically paid in a lump sum, other fees associated with opening a Cicis franchise may have different payment terms. For instance, the initial inventory costs, ranging from $9,031 to $15,040, are payable in a lump sum upon the issuance of an invoice by JMC, Cicis's affiliate. However, the initial package of smallwares, costing $16,000 for a Cicis Buffet Restaurant, and the initial equipment, furniture, fixture, supplies, and décor items, ranging from $162,752 to $226,000 for a Buffet Restaurant and $87,586 to $114,473 for a To Go Restaurant, are payable in two equal installments. The first installment is due when the order is placed, and the second is due before the restaurant opens.
Prospective franchisees should carefully review the current incentive programs and their eligibility for any reductions in the initial franchise fee. They should also be aware of the payment terms for other initial costs, such as inventory, smallwares, and equipment, as these may require lump sum payments or installments. Understanding these financial obligations is crucial for planning and securing the necessary capital to launch a Cicis franchise.