Regarding Cicis, can the Franchise Agreement used when exercising Development Rights differ from the standard Franchise Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
te, you may not rely on our acceptance as a representation, promise, warranty, or guarantee that the Site will meet your own expectations or that your Restaurant will be profitable or otherwise successful, or for any other purpose whatsoever.
We will use our reasonable efforts to review and evaluate your proposed Sites within 30 days after we receive all requested information and materials. If we accept a proposed Site, you or your approved Affiliate must sign a separate Franchise Agreement for the Site within 15 days after we provide you with an execution copy of the Franchise Agreement, failing which, we may withdraw our acceptance.
E. EXECUTION OF FRANCHISE AGREEMENTS.
Simultaneously with signing this Agreement, you or an Affiliate we approve must sign and deliver to us a Franchise Agreement and related documents representing the first Franchise you are obligated to acquire under this Agreement. You or your approved Affiliate must thereafter open and operate a Restaurant according to the terms of that Franchise Agreement. Thereafter, once we have accepted a Site, and prior to signing a lease or to otherwi
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Franchise Agreement signed when exercising Development Rights can differ substantially from the standard Franchise Agreement. Specifically, after Cicis accepts a site, but before the franchisee secures the site, the franchisee must sign Cicis' then-current Franchise Agreement. The terms of this agreement may differ substantially from the agreement Cicis uses on the effective date of the Development Rights agreement. However, the royalty rate will not exceed 5% of Gross Sales for Cicis Buffet Restaurants or 6% of Gross Sales for Cicis To Go Restaurants, and the Initial Franchise Fee will be $30,000 for Cicis Buffet Restaurant or $15,000 for Cicis To Go Restaurants.
This means that a Cicis franchisee with Development Rights might not be able to rely on the terms of the initial Franchise Agreement as a guarantee of future terms. The terms could change, potentially impacting profitability, operational requirements, or other key aspects of the franchise.
However, the royalty rate and initial franchise fee are capped. For a Cicis Buffet Restaurant, the royalty rate will not exceed 5% of gross sales, and the initial franchise fee will be $30,000. For a Cicis To Go Restaurant, the royalty rate will not exceed 6% of gross sales, and the initial franchise fee will be $15,000. Franchisees should carefully review the then-current form of the Franchise Agreement before signing a lease or securing possession of a site to understand the prevailing terms and conditions.