How often must a Cicis franchisee provide a report itemizing Net Sales?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term of this Agreement, you will pay us, as partial consideration for the rights herein granted, a continuing weekly Royalty Fee (the "Royalty Fee") of 5% of
your Restaurant's Net Sales if your Restaurant is a Cicis Buffet Restaurant. However, if your Restaurant is a Cicis To Go Restaurant, you will pay us, as partial consideration for the rights herein granted, a continuing weekly Royalty Fee of 6% of your Restaurant's Net Sales. The Royalty Fee will be due and payable each week based on your Restaurant's Net Sales for the preceding week and will be paid to us via EFT (defined below) or such other means we specify from time to time. We will determine from time to time the start and end day of the week for purposes of calculating the Royalty Fee and the day of the week on which payment of the Royalty Fee is due. If the date on which such payments would otherwise be due is not a business day, then payment will be due on the next business day.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees are required to submit a report itemizing Net Sales on a weekly basis. The Royalty Fee, calculated as either 5% or 6% of Net Sales depending on the restaurant type (Buffet or To Go, respectively), is due each week based on the preceding week's Net Sales. This payment must be made via Electronic Funds Transfer (EFT) or another method specified by Cicis.
Cicis determines the start and end day of the week for calculating the Royalty Fee, as well as the specific day of the week the royalty payment is due. If the payment due date falls on a non-business day, the payment is then due on the next business day. This weekly reporting and payment schedule ensures Cicis receives timely royalty payments based on the franchisee's sales performance.
For a prospective franchisee, this weekly reporting requirement means maintaining accurate and up-to-date sales records. Franchisees must be prepared to track and report their Net Sales meticulously to ensure accurate royalty payments. The use of EFT simplifies the payment process, but franchisees must ensure their accounts are properly set up for these transactions. Understanding the specific weekly schedule set by Cicis is crucial for compliance and avoiding late payment penalties.