How often must a Cicis franchisee report net sales?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
lost or deferred opportunity to grant such license to any other party.
- B. Initial Training Fee. You will pay us, on your execution of this Agreement, a fully earned, nonrefundable training fee in the amount shown on Attachment A in consideration of our allowing you and your designees to participate in our initial training program as described in this Agreement.
- C. Royalty Fee; Royalty Report. 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.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, franchisees are required to report their net sales on a weekly basis. Specifically, the Royalty Fee, which is either 5% or 6% of the Restaurant's Net Sales depending on the restaurant type, is calculated and paid weekly. This fee is based on the restaurant's net sales for the preceding week.
The Royalty Fee is due and payable each week and will be paid via EFT (electronic funds transfer) or another method specified by Cicis. The specific start and end day of the week for calculating the Royalty Fee, as well as the day the payment is due, will be determined by Cicis and may change over time. If the payment due date falls on a non-business day, the payment is due on the next business day.
In addition to the weekly royalty fee, Cicis franchisees must also contribute 5% of their Restaurant's Net Sales to the Fund Contribution, which is also calculated and due at the same time as the Royalty Fee. This means that franchisees must accurately track and report their net sales weekly to ensure proper calculation and timely payment of both the Royalty Fee and the Fund Contribution. This weekly reporting requirement ensures a consistent revenue stream for Cicis and allows for regular monitoring of the franchisee's performance.