By how much will the Cicis royalty fee increase if a Non-Compliance Fee is applied?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 5% of Net Sales for a Cicis Buffet Restaurant; 6% of Net Sales for a Cicis To Go Restaurant (subject to reduction for participation in current incentive programs). | The day of the week we specify (currently, Thursday) | See Notes 2, 3, 4, and 5 |
| Non-Compliance Fee | $250 per failure to comply with the Franchise Agreement, plus, your royalty fee will increase by one (1) percentage point until you have cured all deficiencies | On demand, the day after non- compliance occurs | Payable only if you are in default of your obligations under the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee fails to comply with the Franchise Agreement, their royalty fee will increase by one percentage point. In addition to the royalty fee increase, Cicis will also charge a Non-Compliance Fee of $250 for each failure to comply with the Franchise Agreement. This increased royalty fee remains in effect until the franchisee has corrected all deficiencies.
For a Cicis Buffet Restaurant, the standard royalty fee is 5% of Net Sales, while for a Cicis To Go Restaurant, it is 6% of Net Sales. If a Non-Compliance Fee is applied, the royalty fee would increase to 6% for a Buffet Restaurant and 7% for a To Go Restaurant.
This non-compliance penalty underscores the importance of adhering to the Franchise Agreement. Franchisees should ensure they understand and meet all obligations to avoid the additional costs associated with the Non-Compliance Fee and the increased royalty fee.