What is the nature of the initial franchise fee paid to Cicis, and under what conditions is it considered nonrefundable?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Initial Franchise Fee. You will pay us, on your execution of this Agreement, an initial franchise fee in the amount shown on Attachment A or Attachment A-1, as applicable. The initial franchise fee, when paid, will be deemed fully earned and nonrefundable in consideration of the administrative and other expenses we incurred in granting the license hereunder and for our lost or deferred opportunity to grant such license to any other party.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees must pay an initial franchise fee upon executing the Franchise Agreement. The amount of this fee is specified in Attachment A or A-1 of the agreement.
The FDD states that once the initial franchise fee is paid to Cicis, it is considered fully earned and nonrefundable. This is in consideration for the administrative and other expenses Cicis incurs while granting the franchise license. It also compensates Cicis for the lost opportunity to grant the license to another party.
This nonrefundable nature of the initial franchise fee is a standard practice in franchising. It is important for prospective Cicis franchisees to carefully consider their decision before signing the agreement, as they will not be able to recover this fee once paid, regardless of whether they ultimately open a restaurant. Franchisees should conduct thorough due diligence and seek professional advice to fully understand the terms and conditions of the franchise agreement before committing to the investment.