When is the Cicis Non-Compliance Fee due?
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. |
| Technology and Support Fee | $100 per month | When billed (currently, first day of the month) | The Technology and Support Fee is in addition to all direct out-of-pocket costs you must otherwise incur under the terms of the Franchise Agreement or the Manual to acquire and maintain the required computer system and technology. |
Source: Item 6 — OTHER FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Non-Compliance Fee is due 'on demand, the day after non-compliance occurs.' This fee is triggered if a franchisee defaults on their obligations as outlined in the Franchise Agreement.
In addition to the immediate Non-Compliance Fee of $250 per failure, Cicis imposes a further penalty: the franchisee's royalty fee will increase by one percentage point. This increase remains in effect until all deficiencies are corrected, creating an ongoing financial incentive for the franchisee to resolve the issues promptly.
This structure means that a Cicis franchisee needs to be especially diligent in adhering to the Franchise Agreement to avoid both the initial fee and the increased royalty rate. Franchisees should ensure they understand all requirements and maintain open communication with Cicis to address any potential compliance issues quickly.