How often is the Royalty Fee paid to Cicis, and how is it remitted?
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 pay a continuing weekly Royalty Fee. The Royalty Fee is calculated as 5% of the Restaurant's Net Sales for Cicis Buffet Restaurants, while Cicis To Go Restaurants pay 6% of Net Sales. This fee is a partial consideration for the rights granted in the franchise agreement.
The Royalty Fee is due and payable each week, based on the Restaurant's Net Sales for the preceding week. Payment must be made via EFT (electronic funds transfer) or through other means specified by Cicis from time to time. Cicis determines the start and end day of the week for calculating the Royalty Fee and the specific day of the week when payment is due.
If the scheduled payment date falls on a non-business day, the payment is due on the next business day. Franchisees should be prepared to set up electronic fund transfers to ensure timely payments and avoid potential late fees or penalties. Understanding the weekly sales reporting and payment schedule is crucial for managing cash flow and maintaining compliance with the franchise agreement.