What level of working capital must a Cicis franchisee maintain during the term of the agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (9) you will maintain at all times, during the Term, sufficient working capital to fulfill your obligations under this Agreement;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees must maintain sufficient working capital to fulfill their obligations under the Franchise Agreement throughout the term of the agreement.
This requirement ensures that Cicis franchisees have enough liquid assets to cover ongoing operational expenses, such as rent, utilities, inventory, payroll, and marketing costs. By maintaining adequate working capital, franchisees are better positioned to manage unexpected financial challenges and sustain their business operations.
The Franchise Agreement does not specify a particular dollar amount or a precise formula for calculating the required working capital. Instead, Cicis assesses whether the franchisee has enough capital to meet their financial obligations. Prospective franchisees should discuss with Cicis the factors the company considers when evaluating whether a franchisee meets the working capital requirements.