What is the relationship between the initial franchise fee for Cicis in Item 5 and the estimated initial investment in Item 7?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
ITEM 5 INITIAL FEES
All fees described in this Item 5 are uniform for all franchisees and are not refundable under any circumstances. Except for some amounts that are payable to JMC as described below, all other fees described in this Item 5 are payable in a lump sum.
Initial Franchise Fees: When you sign the Franchise Agreement, you must pay us an initial franchise fee of $30,000 for a Cicis Buffet Restaurant and $15,000 for a Cicis To Go Restaurant (subject to reduction under current incentive programs described below). The initial franchise fee is payable in a lump sum and is uniformly imposed (although we reserve the right to negotiate it at our discretion).
[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT FOR A CICIS BUFFET RESTAURANT]
| Type of Expenditure (Note 1) | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Franchise Fee (Note | $15,000 | Lump sum | On | Us |
| 2) | Execution |
[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT FOR A CICIS BUFFET RESTAURANT]
| Type of Expenditure (Note 1) | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Franchise Fee (Note 2) | $30,000 | Lump sum | On Execution | Us |
[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT FOR A CICIS BUFFET RESTAURANT]
-
- If a Franchise Agreement is signed pursuant to an Area Development Agreement, we will apply the development fee, in increments of $15,000 ($10,000 if you participate in the Development Incentive Program), toward the payment of initial franchise fees. Your initial
franchise fee will be reduced to (i) $5,000 under the Franchise Agreements executed pursuant to the Reopen Incentive Program; (ii) $10,000 under the Franchise Agreements executed pursuant to the Development Incentive Program; and (iii) $0 under the Franchise Agreements executed pursuant to the Veteran's Incentive Program.
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the initial franchise fee is part of the overall estimated initial investment. Item 5 details the initial franchise fee, while Item 7 outlines the total estimated initial investment required to open a Cicis restaurant. The initial franchise fee for a Cicis Buffet Restaurant is $30,000, while for a Cicis To Go Restaurant, it is $15,000. These fees are payable in a lump sum when the Franchise Agreement is signed.
Item 7 includes a table that lists the initial franchise fee as a separate line item within the total estimated initial investment. For a Cicis To Go Restaurant, the initial franchise fee is listed as $15,000, and the total estimated initial investment ranges from $242,086 to $438,232. For a Cicis Buffet Restaurant, the initial franchise fee is $30,000, and the total estimated initial investment ranges from $694,965 to $1,038,753.
Notably, the initial franchise fee may be subject to reduction under certain incentive programs. For example, if a franchisee participates in the Development Incentive Program, the initial franchise fee may be reduced to $10,000. Similarly, under the Veteran's Incentive Program, the initial franchise fee may be reduced to $0. These reductions are applied if the Franchise Agreement is signed pursuant to an Area Development Agreement, and the development fee is applied in increments of $15,000 ($10,000 if participating in the Development Incentive Program) toward the initial franchise fees.