What is the non-compliance fee that Cicis may charge for each violation if a franchisee does not comply with their obligations?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
The noncompliance fee is intended to compensate us for certain expenses or losses we will incur as a result of the non-compliance and is not a penalty or an expression of the total amount of such damages.
Nothing in this paragraph limits any of our other rights and remedies available under the terms of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, the noncompliance fee is designed to compensate Cicis for expenses or losses incurred due to a franchisee's non-compliance. It is not considered a penalty or a complete reflection of all damages Cicis might suffer. This fee does not limit any other rights or remedies available to Cicis under the franchise agreement.
If a Cicis franchisee fails to meet their obligations under the franchise agreement, Cicis has the right to charge this noncompliance fee to cover any resulting expenses or losses. This fee is not intended as a punishment but rather as a means to offset the financial impact of the franchisee's failure to comply with the agreement.
Prospective franchisees should understand that while the noncompliance fee aims to cover Cicis' immediate costs, it does not prevent Cicis from pursuing other legal or contractual remedies for the franchisee's breach. Franchisees should carefully review the franchise agreement to fully understand their obligations and the potential consequences of non-compliance.