What part of the Cicis Franchise Agreement discusses 'Marketing Contributions and Expenditures'?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
Marketing Contributions and Expenditures.
In addition to your participation in the Marketing Programs as described above, you agree to the following:
- (1) You agree to contribute 5% of your Restaurant's Net Sales to the Fund (defined below) ("Fund Contribution").
The Fund Contribution is calculated in the same manner, and will be due and payable at the same time, as the Royalty Fee.
- (2) In addition to the Fund Contribution, you must spend at least 1% of your Restaurant's Net Sales on approved marketing programs for your Restaurant in the Protected Area ("Local Marketing Spend").
We describe in the Manuals from time to time certain expenditures that will not satisfy the Local Marketing Spend unless you obtain our prior written agreement as to specific proposed expenditures.
- (3) If your Restaurant is located within an area that is or becomes covered by a Cooperative (defined below), you must contribute to the Cooperative all amounts required by the Cooperative's
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Section B of Item 22 covers 'Marketing Contributions and Expenditures'. This section stipulates that franchisees must contribute 5% of their restaurant's net sales to the marketing fund. This contribution is termed the "Fund Contribution" and is calculated and payable at the same time as the royalty fee.
In addition to the Fund Contribution, Cicis franchisees are required to spend at least 1% of their restaurant's net sales on approved local marketing programs within their protected area. This is referred to as the "Local Marketing Spend". The manuals specify which expenditures qualify for the Local Marketing Spend, and any exceptions require prior written agreement from Cicis.
Furthermore, if a Cicis restaurant is located within an area covered by a marketing cooperative, the franchisee must contribute to that cooperative as per its governing documents. Understanding these marketing obligations is crucial for prospective franchisees to accurately budget and plan their operational expenses.