Does Cicis have the option to establish a Marketing Fund?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
C.
Marketing Fund.
We have established and may, at our option, continue a marketing fund for the purpose of promoting Cicis Restaurants, the System (and any aspect thereof), and the Marks generally and to develop tools and technology to advance that objective (the "Fund").
While the Fund exists, it will be maintained and administered by us or our designee as follows:
- (1) We will direct all programs conducted, sponsored, or funded by the Fund and will have sole discretion to approve or disapprove the creative concepts, materials, media, vendors and strategies used in and in connection with all such programs and activities.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis has established and may continue a marketing fund. This fund is designed to promote Cicis Restaurants, the System, the Marks, and to develop tools and technology to advance these objectives. The fund is maintained and administered by Cicis or its designee. Cicis has the sole discretion to approve or disapprove the creative concepts, materials, media, vendors, and strategies used in connection with all programs and activities funded by the marketing fund.
Cicis directs all programs conducted, sponsored, or funded by the Fund. They can use the Fund to cover activities within the scope of the Fund's responsibilities. This includes reimbursing expenses for administering and operating the Fund, covering costs of planning, maintaining, administering, directing, preparing, and placing marketing materials, traditional and non-traditional commercial development, and media placement. The fund can also be used for product innovation, guest research, product testing, and the development, licensing, maintenance, and operation of technology tools like websites and applications.
All Fund Contributions are maintained in a separate account and will not be used to defray Cicis's general operating expenses, except as described in Section 7.C(2). Cicis will prepare an unaudited annual statement of the operations of the Fund and make the most recent statement available to franchisees upon written request within 120 days after their fiscal year end. Cicis does not have any obligation to ensure that expenditures for each franchisee are equivalent or proportionate to their contribution, or to ensure any franchisee benefits directly or pro rata from the Fund's activities.
Although the Fund is intended to be of perpetual duration, Cicis may terminate the Fund. However, the Fund will not be terminated until all monies in the Fund have been expended for marketing or promotional purposes or returned to all contributors, without interest, based on their respective contributions.