How are the monthly technology and support fees of $100 for Cicis franchises recognized?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
nstead, royalty revenue is recognized as franchised restaurant sales occur. Advertising contributions received from the franchisees are recorded as a component of marketing fees in the combined
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the technology and support fees of $100 are charged monthly. These fees are directly tied to Cicis's performance obligations under the franchise agreement. As such, Cicis recognizes these fees monthly as they are charged. This means that each month, Cicis records the $100 fee as revenue, aligning it with the ongoing technology and support services provided to the franchisee.
For a prospective Cicis franchisee, this means that the $100 monthly technology and support fee is a consistent and predictable expense. It is recognized as revenue by Cicis in the same month that it is charged, reflecting the ongoing nature of the services provided. This contrasts with initial franchise fees or development fees, which are recognized over a longer period.
This accounting practice is fairly standard in franchising for ongoing services. By recognizing the revenue monthly, Cicis ensures that its financial statements accurately reflect the value provided to franchisees each month through technology and support services. This approach provides transparency and aligns revenue recognition with the delivery of services, which is a common practice in the franchise industry.