factual

When is the Post-Termination / Post-Expiration De-identification Costs fee due for a Cicis franchise?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

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Type of Fee(1) Amount Due Date Remarks
Indemnification Amount of damages suffered On demand You must indemnify, defend, and hold us, our affiliates, and our and affiliates' respective owners, directors, managers, officers, employees, agents, successors, and assignees harmless against all third party claims arising from the development or operation of your Restaurant (or by your employees, or others that arise from your employment practices).
Audit Fee Cost of audit When billed Payable only if we find, after an audit, that you have understated any amount owed to us by more than 3% or if we decide to conduct an audit because of your failure to timely submit the required records or reports.
Insurance Fee $250, plus actual cost of obtaining the insurance coverage When billed If you fail to maintain the required insurance, we have the right, but not the obligation, to obtain it for you. If we do, we will charge you a fee plus the cost of the insurance.
Insufficient Funds Fee $100 per occurrence On demand If a payment does not clear your bank, we charge a service fee of $25, which includes the bank charge. We may draft your account for this fee.
Enforcement Costs Costs awarded by the applicable court As incurred Payable only if you do not comply with the Franchise Agreement or Area Development Agreement, and we are the prevailing party in any relevant litigation.
Post-Termination / Post-Expiration De-identification Costs Actual cost incurred by us As incurred If you fail to de-identify after the franchise terminates or expires, we may make the necessary changes at your expense.
Management Fee 10% of Net Sales, plus costs and expenses As incurred If we assume management of your Restaurant upon your or your Manager Owner's death, we may charge you the Management Fee, plus the direct out-of-pocket costs and expenses incurred in the operation of the Restaurant.
Type of Fee(1) Amount Due Date Remarks
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Lost Revenue Damages A lump sum amount equal to the net present value of the royalty fees, the marketing fund contributions, and contributions to the local marketing cooperative that would have become due from the last date of regular operations of your Restaurant in compliance with the Franchise Agreement to the earlier of: (a) 104 weeks following the date of termination, or (b) the originally scheduled expiration of the Franchise Agreement term. On demand Payable if we terminate the Franchise Agreement because of your breach or if you terminate the Franchise Agreement without cause.
Data Collection Fee $50 per week, but we may increase this fee up to $100 per week When billed If you fail to submit to us, when due, any required information or report, including certificates of insurance and financial statements, we may, after first providing notice and a reasonable opportunity to cure, assess a Data Collection Fee, which we may draft by electronic fund transfer from your authorized bank account. If you fail to submit sales information to us when due, we may immediately assess a Data Collection Fee without notice.
Gift Cards $0.30 per card and a

Source: Item 6 — OTHER FEES (FDD pages 14–21)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, the Post-Termination / Post-Expiration De-identification Costs are due 'as incurred.' This means that a franchisee will be charged for these costs at the time that Cicis actually incurs them.

This fee covers the expenses Cicis incurs if a franchisee fails to remove Cicis branding and other identifying marks from the restaurant after the franchise agreement terminates or expires. If a franchisee does not properly 'de-identify' the location, Cicis has the right to make the necessary changes themselves and charge the franchisee for the actual costs they incur.

For a prospective Cicis franchisee, this means it is crucial to understand the specific de-identification requirements outlined in the franchise agreement. Failing to meet these requirements after the agreement ends can lead to unexpected expenses, as the franchisee will be responsible for covering Cicis's costs to rectify the situation. Franchisees should factor in these potential costs when planning for the end of their franchise term.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.