When is the initial inventory fee for a Cicis franchise payable?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 5 — INITIAL FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the initial inventory fee, which ranges from $9,031 to $15,040, is payable in a lump sum upon the issuance of an invoice by JMC, Cicis's affiliate. This inventory includes special recipe products such as cheese, sauces, dressings, dough ingredient packs, mixes, toppings, meats, flour, icing, and specialty sugar.
Prospective Cicis franchisees should be aware of this immediate payment obligation upon receiving the invoice from JMC. This upfront cost is in addition to other initial fees, such as the franchise fee and potential development fees. Therefore, franchisees need to ensure they have sufficient capital available to cover these expenses when starting their Cicis franchise.
It is common in the franchise industry for franchisors to require payment for initial inventory before opening. This ensures that franchisees have the necessary products to start operations and maintain brand consistency. However, the specific timing of the payment, such as 'upon issuance of invoice,' can vary among different franchise systems. Franchisees should carefully review the payment terms outlined in the Franchise Agreement and related documents to understand their obligations.