factual

Does Cicis have an obligation to ensure that my expenditures are equivalent to my Fund Contribution?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (4) We do not undertake any obligation to make expenditures for you which are equivalent or proportionate to your Fund Contribution or to ensure that any you or any other franchisee benefits directly or pro rata from the Fund's activities.

Source: Item 22 — CONTRACTS (FDD pages 64–65)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, Cicis does not guarantee that a franchisee's expenditures will be equivalent or proportionate to their Fund Contribution. Nor does Cicis ensure that any franchisee will directly or pro rata benefit from the Marketing Fund's activities.

This means that while franchisees are required to contribute to the Marketing Fund, Cicis has the discretion to allocate those funds as they see fit. The Fund is used to promote Cicis Restaurants, the System, and the Marks, and to develop related tools and technology. Cicis directs all programs conducted, sponsored, or funded by the Fund and has sole discretion to approve or disapprove the creative concepts, materials, media, vendors, and strategies used.

Cicis will maintain Fund Contributions in a separate account and will not use them to defray general operating expenses, except for specific activities such as administering the Fund and covering costs related to marketing, commercial development, and technology. Cicis will prepare an unaudited annual statement of the Fund's operations and make it available to franchisees upon written request within 120 days after the fiscal year end.

While the Marketing Fund is intended to be perpetual, Cicis can terminate it, but only after all monies have been spent on marketing or promotional purposes or returned to contributors based on their respective contributions, without interest.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.