What is the minimum monthly marketing contribution required from Cicis franchisees?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing fund: The Company's franchises and corporate owned restaurants each generally contribute the greater of a set amount, per the individual franchise agreement, or approximately 5% of sales per month as a marketing contribution in accordance with their respective franchise agreements. Marketing contributions and expenses are tracked separately from other activities. These contributions received are included in cash and cash equivalents—marketing fund and accounts receivable—marketing fund in the combined balance sheets. Any amounts not used in a fiscal year are carried over to the succeeding year and shown as a deferred liability. Amounts used in excess of marketing contributions would be recognized as an expense within advertising costs on the combined statements of income.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees are generally required to contribute to the marketing fund. The contribution is determined by the individual franchise agreement, with franchisees and corporate-owned restaurants contributing either a set amount or approximately 5% of sales per month, whichever is greater.
This means that a prospective Cicis franchisee's marketing contribution will depend on the specifics of their franchise agreement and their monthly sales. If the set amount in the franchise agreement is lower than 5% of their monthly sales, they will be required to contribute 5% of their sales. Conversely, if the set amount is higher than 5% of their sales, they will need to contribute the set amount.
The marketing contributions are tracked separately and are used for advertising, public relations, merchandising, and administrative expenses to enhance the Cicis brand. Any unused contributions are carried over to the following year, while any expenses exceeding the contributions are recognized as advertising costs.
Prospective franchisees should carefully review their franchise agreement to understand the specific terms related to marketing contributions, including the set amount and how it compares to the 5% of sales threshold. Understanding these terms is crucial for budgeting and financial planning.