How does the Cicis Reopen Incentive Program Addendum relate to the original Franchise Agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
On Smile LLC ("we"), the "Franchisee" identified below ("you"), and your owners who have guaranteed your performance under the Franchise Agreement (collectively, the "Guarantors" and, together with us and you, the "Parties") execute this Reopen Incentive Program Addendum (the "Addendum") to supplement and amend that certain Franchise Agreement identified on Attachment A hereto (as it might have previously been amended, the "Franchise Agreement"). The Effective Date of this Addendum is the date on which we sign below. 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:
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Reopen Incentive Program Addendum is designed to supplement and amend the existing Franchise Agreement. This addendum is executed between Smile LLC (Cicis) and the franchisee, along with any guarantors, to modify the terms of the original agreement. The addendum becomes effective upon signing by Cicis. Capitalized terms within the addendum that are not specifically defined take on the meanings provided in the original Franchise Agreement.
The purpose of the Reopen Incentive Program Addendum is to address situations where a Cicis restaurant has been previously operated but is now being reopened, either by the same franchisee, an affiliate, or a third party. The original franchise agreement governing the restaurant's prior operation would have been terminated. The new Franchise Agreement, along with the addendum, governs the ownership and operation of the reopened restaurant.
Under this program, the franchisee agrees to remodel and refresh the restaurant at their own expense, adhering to specific obligations outlined in an attachment to the addendum. This includes completing the refresh and reopening the restaurant by a specified deadline. In return, Cicis offers a reduction in the initial franchise fee, potentially lowering it to $5,000, provided the franchisee remains in good standing. Failure to maintain good standing would require the franchisee to pay the remaining balance of the full initial franchise fee. The addendum also includes potential modifications to royalty fees, which are determined by Cicis at their discretion.
This addendum is an integral part of the Franchise Agreement, representing the complete agreement between the parties regarding the reopening matters. Except as specifically modified by the addendum, the original Franchise Agreement remains in full effect. The addendum allows for execution in counterparts and recognizes electronic signatures and photocopies as having the same legal force as originals.