What is the name of the Cicis program that provides incentives for underperforming locations?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT D-4 UNDERPERFORMING INCENTIVE PROGRAM ADDENDUM
(Franchise Agreement)
UNDERPERFORMING INCENTIVE PROGRAM ADDENDUM
(Franchise Agreement)
On Smile LLC ("we") and the "Franchisee" identified below ("you" and, together with us, the "Parties") execute this Underperforming Incentive Program Addendum (the "Addendum") to supplement and amend that certain Franchise Agreement the Parties have executed immediately prior to the execution of this Addendum (as it might have otherwise been amended, the "Franchise Agreement"). The "Effective Date" of this Addendum is the same as the Effective Date of the Franchise Agreement. Terms used but not defined in this Addendum have the meanings given them in the Franchise Agreement. For valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the incentive program for underperforming locations is called the "Underperforming Incentive Program." Franchisees must apply and be approved to participate in this program. Franchisees must also represent that the information provided in their application is true and correct.
To remain in good standing, franchisees must comply with all material obligations under the Franchise Agreement, as determined solely by Cicis. If a franchisee is approved for the Underperforming Incentive Program, Cicis may modify royalty fees.
Specifically, the royalty fee may be reduced to 3% of net sales for the first year after the restaurant's opening date, provided the franchisee remains in the program and in good standing. If the franchisee ceases to be approved or in good standing before the first anniversary, the royalty fee will revert to the rate specified in Section 4.C of the Franchise Agreement.