What is the purpose of the Cicis marketing fund?

According to Cicis's 2025 Franchise Disclosure Document, franchisees are required to contribute 5% of their restaurant's net sales to a marketing fund. The primary purpose of this fund is to promote Cicis restaurants, the Cicis system as a whole, and the brand's trademarks. The fund is also used to develop tools and technology aimed at advancing these marketing objectives. Cicis restaurants owned by affiliates also contribute to the fund at the same rate as franchisees.

The marketing fund is administered by Cicis, which has the sole discretion to approve all creative concepts, advertising, marketing materials, and media used in marketing programs. The funds are used to cover the costs associated with planning, maintaining, administering, directing, preparing, and placing marketing efforts. This includes the development, production, and placement of various marketing initiatives, such as traditional and non-traditional advertising, media placement, product innovation, consumer research, and testing. The fund also covers departmental costs, including personnel and compensation for marketing-related activities, as well as Cicis website-related expenses.

Cicis is committed to operating the fund as a conduit for collecting and spending contributions. While Cicis may keep contributions in a separate account, they will be accounted for separately from the company's general operating funds. The document states that the fund will not be used to pay for general operating expenses, except for reasonable administrative costs and overhead incurred in administering the fund. Cicis will prepare an annual statement of the fund's collections and expenses, which will be available to franchisees upon written request within 120 days after the fiscal year end. These statements are not required to be audited.

Franchisees should note that Cicis may reallocate marketing contributions and expenditures to the fund, local marketing, or a cooperative with written notice. While the total marketing expenditure will not increase, Cicis can adjust how marketing dollars are allocated among these different avenues. Cicis can require franchisees to contribute up to 100% to the fund or a cooperative, or spend up to 100% on local marketing. Additionally, franchisees are required to spend at least 1% of monthly net sales on local marketing in their protected area, adhering to Cicis's standards and approval.