Is JMC an approved supplier of certain items that Cicis franchisees will use in the development and operation of their Cicis Restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ome or all the Operating Assets. We are not approved suppliers of any Operating Asset but as noted in Item 5 above, our affiliate, JMC, is the sole approved supplier of certain items that you will use in the development and operation of your Cicis Restaurant. You will be required to participate in our gift and loyalty card programs that are currently conducted by and through our affiliate, CiCi Services. We will provide a list of approved and designated suppliers in the Operations Manuals or otherwise in writing.
We have designated third-party suppliers for the following Operating Assets and you must purchase such goods and services from those suppliers: food and beverage products; the initial restaurant equipment, furniture, fixture, supplies & décor package; smallwares; branded merchandise; the point-of-sale system; digital menu boards; game room card readers; computer system and other technology infrastructure requirements; vehicles for delivery; third-party delivery service providers; construction contractor; marketing materials; and insurance.
The total amount of required purchases of goods and services by franchisees constitute 90% to 95% of the total cost incurred by you in establishing your Cicis Restaurant and 90% to 95% of the total cost incurred by you in operating your Cicis Restaurant.
Insurance: Before your Cicis Restaurant opens for business and throughout its operation, you must secure and maintain the insurance coverage required by us, which includes the following:
- (1) Commercial General Liability Insurance, personal injury, advertising injury, completed operations, products liability, and fire damage coverage, in the amount of $1,000,000 per occurrence limit with a $2,000,000 general aggregate and a $2,000,000 product aggregate limit; fire legal liability of $50,000, and a premises medical limit of $2,500.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–28)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, JMC, an affiliate of Cicis, is the sole approved supplier of certain items that franchisees will use in the development and operation of their Cicis restaurant. This means that franchisees are required to purchase these specific items from JMC. During the 2024 fiscal year, JMC received $108,660,523 from the sale or lease of products or services to franchisees. Some of Cicis's officers have an indirect ownership interest in JMC because of their ownership interest in Cicis's common parent company.
Cicis may approve or designate vendors and suppliers for some or all of the Operating Assets to facilitate consistency and quality among Cicis Restaurants and to leverage volume purchasing power. However, Cicis is not an approved supplier of any Operating Asset. Cicis has designated third-party suppliers for the following Operating Assets, and franchisees must purchase such goods and services from those suppliers: food and beverage products; the initial restaurant equipment, furniture, fixture, supplies & décor package; smallwares; branded merchandise; the point-of-sale system; digital menu boards; game room card readers; computer system and other technology infrastructure requirements; vehicles for delivery; third-party delivery service providers; construction contractor; marketing materials; and insurance.
Cicis franchisees are required to participate in Cicis's gift and loyalty card programs that are currently conducted by and through their affiliate, CiCi Services. Cicis may profit or derive revenue or other benefits from franchisee purchases from approved or designated suppliers, and Cicis and/or its affiliates may receive payments, fees, commissions, or reimbursements from approved or designated suppliers in respect of franchisee purchases. During the 2024 fiscal year, Cicis received rebates amounting to $9,752,184 from their designated suppliers, representing 22.92% of their total revenue of $42,546,700 for that fiscal year. The total amount of required purchases of goods and services by franchisees constitutes 90% to 95% of the total cost incurred by franchisees in establishing their Cicis Restaurant and 90% to 95% of the total cost incurred by franchisees in operating their Cicis Restaurant.