What is the Insufficient Funds Fee for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Insufficient Funds Fee | $100 per occurrence | On demand | If a payment does not clear your bank, we charge a service fee of $25, which includes the bank charge. We may draft your account for this fee. |
Source: Item 6 — OTHER FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the insufficient funds fee is $100 per occurrence. This fee is charged if a payment from the franchisee to Cicis does not clear the franchisee's bank. In addition to the $100 fee, Cicis also charges a $25 service fee, which includes the bank charge they incur.
Cicis has the right to draft the franchisee's account for both the insufficient funds fee and the service fee. This means Cicis can directly withdraw the money from the franchisee's bank account to cover these charges. This is a fairly standard practice in franchising, as it allows the franchisor to quickly recover funds and avoid further collection efforts.
It is important for prospective Cicis franchisees to maintain sufficient funds in their accounts to avoid these fees. Franchisees should also be aware of the due dates for all payments to Cicis to ensure timely payments and avoid any potential issues. The insufficient funds fee can add up quickly if multiple payments are rejected, so franchisees should take steps to prevent this from happening.