What is the reduced Initial Franchise Fee for each Qualifying Franchise Agreement under the Cicis Development Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
upplement and amend that certain Franchise Agreement they have executed immediately prior to the execution of this Addendum (as it might have otherwise been amended, the "Franchise Agreement"). The Franchise Agreement was executed pursuant to a Development Agreement between us and you or your affiliate (the "Development Agreement"). The "Effective Date" of this Addendum is the same as the Effective Date of the Franchise Agreement. Capitalized terms used but not defined in this Addendum have the meanings given them in the Franchise Agreement. For valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
- Reduction of Initial Franchise Fee. Section 4.A of the Franchise 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 Initial Franchise Fee shall be reduced to $10,000. We rese
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees who participate in the Development Incentive Program and remain in good standing may benefit from a reduced Initial Franchise Fee. Specifically, the Initial Franchise Fee for each Qualifying Franchise Agreement is reduced to $10,000. This incentive is designed to encourage and support the development of multiple Cicis restaurants under an Area Development Agreement.
However, this reduction is conditional. Cicis reserves the right to revoke the reduction if the franchisee is no longer approved to participate in the program or ceases to be in good standing. Good standing is defined as compliance with all material obligations under the Development Agreement, Franchise Agreements, and any other agreements with Cicis. The determination of whether an obligation is "material" is at Cicis's sole discretion, adding a layer of potential risk for the franchisee.
This incentive is formalized through a Development Incentive Program Addendum to both the Area Development Agreement and the Franchise Agreement. This addendum outlines the terms and conditions of the program, including the reduction of fees and the criteria for maintaining good standing. Prospective franchisees should carefully review these addenda to fully understand their rights and obligations under the Development Incentive Program. The standard Initial Franchise Fee is $30,000 for a Cicis Buffet Restaurant or $15,000 for a Cicis To Go Restaurant, so this represents a significant savings.