What is an 'LTO' in the context of Cicis' marketing?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, from time to time, develop and administer marketing and sales promotion programs designed to promote and enhance the collective success of all Cicis Restaurants, including national, regional, or local programs and limited time offers (each an "LTO") that promote the brand, particular products, or gift cards and other loyalty programs (the "Marketing Programs").
You will participate in all such Marketing Programs, at your expense, in accordance with the terms and conditions we establish for each program.
- (1) All products we require you to offer under any mandatory LTO (or the ingredients for such products) will be automatically shipped to you by our designated supplier within 10 days following the announcement of the LTO unless, within such 10-day period, you have placed an order for the required products (or the ingredients for such products) with our designated supplier in quantities sufficient to satisfy our requirements for the LTO.
If you order less than the required amount, our designated supplier will automatically ship the balance to you.
Notwithstanding anything to the contrary, you shall be responsible for cost and expenses associated with your purchase or automatic supply by our designated suppliers of the products (or the ingredients for such products) and services required by you to offer any LTO.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, an "LTO" refers to limited time offers that promote the brand, particular products, or gift cards and other loyalty programs. These LTOs are part of the broader Marketing Programs that Cicis develops and administers to enhance the collective success of all Cicis Restaurants. Franchisees are required to participate in all Marketing Programs, including LTOs, at their own expense, following the terms and conditions established by Cicis for each program.
Cicis ensures that franchisees have the necessary products to participate in LTOs by automatically shipping the required products (or ingredients) through designated suppliers within 10 days of the LTO announcement. However, franchisees have the option to order these products directly from the supplier within that 10-day window to meet the LTO requirements. If a franchisee orders less than the required amount, the designated supplier will automatically ship the remaining balance. The franchisee is responsible for all costs and expenses associated with purchasing or receiving these automatically supplied products and services.
This mandatory participation in LTOs means franchisees must be prepared to adapt their offerings and potentially adjust their inventory based on Cicis' marketing strategies. Franchisees should factor in the costs associated with LTOs, including the purchase of specific products and ingredients from designated suppliers, into their financial planning. Additionally, franchisees need to stay informed about upcoming LTOs and ensure timely ordering or be prepared for automatic shipments to avoid any disruptions in their ability to meet customer demand during these promotional periods.