When is the Management Fee due for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Management Fee | 10% of Net Sales, plus costs and expenses | As incurred | If we assume management of your Restaurant upon your or your Manager Owner's death, we may charge you the Management Fee, plus the direct out-of-pocket costs and expenses incurred in the operation of the Restaurant. |
Source: Item 6 — OTHER FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Management Fee is due as incurred. This fee, set at 10% of Net Sales, plus costs and expenses, is charged if Cicis assumes management of the restaurant due to the death of the franchisee or their Managing Owner. In this scenario, the franchisee will be responsible for covering the Management Fee in addition to the direct out-of-pocket costs and expenses Cicis incurs while operating the restaurant.
This condition is not a typical, recurring franchise fee. Instead, it is a conditional fee that only applies if Cicis steps in to manage the restaurant due to specific, unfortunate circumstances. The 'as incurred' payment schedule means that Cicis will bill the franchisee for the management fee and associated costs as they arise during the period they are managing the restaurant.
For a prospective franchisee, this means understanding that while the management fee is not a standard, ongoing expense, it could become a significant cost under certain circumstances. It is important to have a plan in place for management succession and business continuity to minimize the likelihood of this fee being applied. Franchisees should discuss with Cicis what specific costs and expenses are included in addition to the 10% of Net Sales to fully understand the potential financial impact.