What pre-opening services are included in Cicis franchise agreements?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ons are substantially affected by economic conditions, which can vary significantly by market and can be impacted by consumer disposable income levels and spending habits.
Nature of products and services:
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. The performance obligation under the franchise agreement is the promise to provide daily access to the symbolic intellectual property over the term of each franchise agreement, which is a series of distinct services that represents a single performance obligation. Although the franchisor's underlying activities associated with the symbolic intellectual property will vary, both within a day and day-to-day, the symbolic intellectual property is accessed over time
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 during 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.
These components are considered highly interdependent with the franchise right, and therefore, are accounted for as a single performance obligation. This means that Cicis views providing access to its brand and operational support as one unified service rather than separate distinct services.
For a prospective franchisee, this means that the initial franchise fee covers not only the right to operate under the Cicis brand but also the initial training and support needed to get the restaurant up and running. Furthermore, franchisees will receive ongoing support and brand development assistance throughout the term of the franchise agreement.