Can Cicis revoke the reduction of the Initial Franchise Fee?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
s a Cicis Restaurant by you, your affiliate, or a third party unaffiliated with you and was permanently closed or has been temporarily closed for an extensive period. The franchise agreement that previously governed the owner's operation of the Restaurant has been terminated. You and we have entered into the Franchise Agreement to govern your ownership and operation of the previously closed Restaurant from and after the Effective Date.
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- Reopening of the Restaurant. You agree that you will, at your expense, take the actions described on Attachment A hereto to remodel and refresh the Restaurant (the "Refresh Obligations") prior to reopening the Restaurant, and you will complete the Refresh Obligations and reopen the Restaurant for regular business in accordance with the Franchise Agreement by no later than the Reopening D
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis can revoke a reduction of the initial franchise fee under certain conditions. Specifically, if a franchisee or their affiliates cease to be in "good standing," Cicis reserves the right to revoke the reduction. Good standing is defined as compliance with all material obligations under the Franchise Agreement and any other agreements between Cicis and the franchisee or their affiliates. Cicis retains sole discretion to determine whether particular obligations are "material," and their decision is final.
For franchisees participating in the Development Incentive Program, Cicis can revoke the reduction of the initial franchise fee if the franchisee is no longer approved to participate in the program or ceases to be in good standing. In such cases, the franchisee will be required to pay the balance of the full initial franchise fee. The Development Incentive Program Addendum also stipulates that good standing requires compliance with all material obligations under the Franchise Agreement, the Development Agreement, and all other agreements between Cicis and the franchisee or their affiliates.
For franchisees reopening a previously closed Cicis restaurant, the initial franchise fee may be reduced to $5,000, but Cicis reserves the right to revoke this reduction if the franchisee ceases to be in good standing. If the reduction is revoked, the franchisee must pay the remaining balance of the full initial franchise fee. This provision underscores the importance of maintaining compliance with all agreements to retain the benefit of the reduced fee.
These stipulations highlight the importance of understanding and adhering to all contractual obligations with Cicis. Prospective franchisees should carefully review the definition of "good standing" and the potential consequences of failing to meet these obligations, as Cicis has the final say in determining whether a franchisee is in compliance. This could significantly impact the overall cost of the franchise if the initial fee reduction is revoked.