What interest rate will Cicis charge on unpaid obligations under the Franchise Agreement?

According to Cicis's 2025 Franchise Disclosure Document, any unpaid obligations under the Franchise Agreement will incur interest. Specifically, these unpaid amounts will bear interest from the date the payment was due until it is paid in full. The interest rate applied will be five percent (5%) per month, or the maximum rate allowed by applicable law, whichever is less.

This means that if a Cicis franchisee fails to make timely payments for royalties, marketing fund contributions, or any other fees owed to Cicis, they will be charged interest on the outstanding balance. The interest will continue to accrue until the full amount is paid. The rate is fairly high at 5% per month, which equates to 60% annually.

It is important for prospective Cicis franchisees to understand this policy and ensure they have sufficient capital and financial management practices in place to meet their payment obligations on time. Failure to do so could result in significant additional costs in the form of interest charges, as well as potential legal ramifications for breach of the Franchise Agreement.