What is the purpose of the Cicis Marketing Programs?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
vely responsible for the terms and conditions of employment of your employees, including recruiting, hiring, firing, training, compensation, work hours and schedules, work assignments, safety and security, discipline, and supervision. You agree to manage the employment functions of your Restaurant in compliance with the Laws.
7. MARKETING AND RELATED FEES
- A. Participation in Marketing and Promotional Programs. We may, from time to time, develop and administer marketing and sales promotion programs designed to promote and enhance the collective success of all Cicis Restaurants, including national, regional, or local programs and limited time offers (each an "LTO") that promote the brand, particular products, or gift cards and other loyalty programs (the "Marketing Programs"). You will participate in all such Marketing Programs, at your expense, in accordance with the terms and conditions we establish for each program.
- (1) All products we require you to offer under any mandatory LTO (or the ingredients for such products) will be automatically shipped to you by our designated supplier within 10 days following the announcement of the LTO unless, within such 10-day period, you have placed an order for the required products (or the ingredients for such products) with our designated supplier in quantities sufficient to satisfy our requirements for the LTO. If you order less than the required amount, our designated supplier will automatically ship the balance to you. Notwithstanding anything to the contrary, you shall be responsible for cost and expenses associated with your purchase or automatic supply by our designated suppliers of the products (or the ingredients for such products) and services required by you to offer any LTO. You hereby authorize us to withdraw payment for all products automatically shipped to you by our designated suppliers on or before the payment date set forth in the supplier's invoice by EFT from your account in accordance with Section 4.H. of this Agreement.
- (2) You will comply with all requirements and specifications we establish, and use all designated vendors, for each Marketing Program.
- (3) We may, from time to time, provide you, without charge, certain marketing pieces regarding the Cicis® franchise opportunity. You must display those materials in your Restaurant in accordance with our direction.
- 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
governing documents ("Minimum Cooperative Contribution") and any additional amounts authorized by a vote of the Cooperative's members and approved by us ("Excess Cooperative Contribution"). Your Minimum Cooperative Contribution may be applied toward your Local Marketing Spend except where and to the extent used by the Cooperative on programs that, as described above, do not satisfy the Local Marketing Spend. Excess Cooperative Contributions may not be applied to offset the Local Marketing Spend.
- (4) From time to time, we may, in our discretion, aggregate or re-allocate any of your Fund Contributions, Local Marketing Spend, and Minimum Cooperative Contributions to one or more of those marketing vehicles as, and for such time as, we specify.
- C. Marketing Fund. We have established and may, at our option, continue a marketing fund for the purpose of promoting Cicis Restaurants, the System (and any aspect thereof), and the Marks generally and to develop tools and technology to advance that objective (the "Fund").
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Marketing Programs are designed to promote and enhance the collective success of all Cicis Restaurants. These programs include national, regional, or local initiatives, as well as limited time offers (LTOs) that promote the brand, specific products, or gift cards and other loyalty programs. As a franchisee, you are required to participate in these Marketing Programs at your own expense, adhering to the terms and conditions established by Cicis for each program.
In addition to participating in the Marketing Programs, franchisees must contribute 5% of their restaurant's Net Sales to the Fund, known as the Fund Contribution. Franchisees are also required to spend at least 1% of their restaurant's Net Sales on approved local marketing programs within their protected area, referred to as the Local Marketing Spend. If a restaurant is located within an area covered by a Cooperative, franchisees must contribute to the Cooperative as required by its governing documents, with the possibility of additional contributions authorized by the Cooperative's members and approved by Cicis.
Cicis retains the discretion to aggregate or re-allocate Fund Contributions, Local Marketing Spend, and Minimum Cooperative Contributions to various marketing vehicles as needed. Furthermore, Cicis has established a marketing fund to promote Cicis Restaurants, the System, and the Marks generally, as well as to develop tools and technology to advance that objective. Cicis maintains sole discretion over all programs conducted, sponsored, or funded by the Fund, including the approval of creative concepts, materials, media, vendors, and strategies used in connection with these programs and activities.
Franchisees must comply with all requirements and specifications established by Cicis and use all designated vendors for each Marketing Program. Cicis may also provide franchisees with marketing materials regarding the Cicis franchise opportunity, which must be displayed in the restaurant according to Cicis's directions. All marketing and promotion conducted by franchisees must be dignified and conform to Cicis's standards and requirements.