What pre-opening services are included in the Cicis franchise agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise agreements: The franchise agreements include: (a) the right to use the symbolic intellectual property over the term of each franchise agreement, (b) pre-opening services, such as training, and (c) ongoing services, such as management of the advertising fund contributions, development of training materials and menu items and restaurant monitoring. These promises are highly dependent upon and interrelated with the franchise right granted in the franchise agreement, so they are not considered to be individually distinct and, therefore, are accounted for as a single performance obligation.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the franchise agreements include several components. These include the right to use Cicis's symbolic intellectual property for the term of the agreement, pre-opening services such as training, and ongoing services like managing advertising fund contributions, developing training materials and menu items, and restaurant monitoring.
For a prospective franchisee, this means that the initial franchise fee covers not only the right to operate under the Cicis brand but also crucial support and training needed to get the restaurant up and running. The ongoing services indicate a continuing relationship where Cicis provides support in marketing, operations, and quality control.
It is important to note that Cicis considers these promises highly dependent upon and interrelated with the franchise right, so they are accounted for as a single performance obligation. This means that Cicis views the entire package of rights and services as one combined offering, rather than distinct, separate services.