What is the reduced Development Fee for Cicis under the Development Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
eements, at least five (5) Cicis Pizza Restaurants. In light of your acquisition of the Development Rights and your agreement to remain in good standing (as defined below), we have agreed to allow you to participate in our Development Incentive Program (the "Program") with respect to the Development Agreement and Franchise Agreements that you or your affiliates execute pursuant to the Development Agreement from and after the Effective Date of this Addendum (the "Qualifying Franchise Agreements"). We may revoke your participation in the Program if, at any time, we determine that you no longer qualify to participate.
-
- Reduction of Development and Initial Franchise Fees. Section 3 of the Development Agreement is supplemented and amended by adding the following to the end of the Section:
While you are approved to participate in the Program and provided you and your affiliates remain in good standing, we agree that the Development Fee will be reduced to $10,000 times the total number of Restaurants to be developed hereunder, and the Initial Franchise Fee under each Qualifying Franchise Agreement shall be reduced to $10,000. We reserve the right to revoke the foregoing reductions at any time you are no longer approved to participate in the Program or you ceas
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees who are approved to participate in the Development Incentive Program and remain in good standing may benefit from a reduced Development Fee. The standard Development Fee is reduced to $10,000 times the total number of restaurants to be developed under the Area Development Agreement.
To qualify for this reduction, the franchisee and their affiliates must maintain "Good Standing," which means compliance with all material obligations under the Development Agreement, Franchise Agreements, and other agreements with Cicis. Cicis retains the sole discretion to determine whether obligations are considered "material," and their decision is final.
Cicis reserves the right to revoke the Development Fee reduction if the franchisee is no longer approved to participate in the program or ceases to be in good standing. If this occurs, the franchisee will be required to pay the balance of the full Development Fee as outlined in the Development Agreement. This condition highlights the importance of maintaining compliance with all agreements to retain the incentive.