What is the scope of the Cicis franchisee's agreement to reopen the previously closed Restaurant under the Reopen Incentive Program Addendum?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
OGRAM ADDENDUM**
(Franchise Agreement)
REOPEN INCENTIVE PROGRAM ADDENDUM
(Franchise Agreement)
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:
-
- Restaurant History. The Restaurant identified in the Franchise Agreement was formerly operated as 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.
-
- 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 the 2025 Cicis Franchise Disclosure Document, the Reopen Incentive Program Addendum outlines the agreement between Cicis and the franchisee regarding the reopening of a previously closed restaurant. The franchisee agrees to undertake specific actions, at their own expense, to remodel and refresh the restaurant. These actions are detailed in Attachment A of the addendum and are referred to as the "Refresh Obligations."
The franchisee is obligated to complete these Refresh Obligations and reopen the restaurant for regular business operations by a deadline also specified in Attachment A, adhering to the terms outlined in the Franchise Agreement. This ensures that the reopened Cicis restaurant meets the brand's current standards and operational requirements.
As an incentive, Cicis reduces the Initial Franchise Fee to $5,000, provided the franchisee and their affiliates remain in good standing. Good standing is defined as compliance with all material obligations under the Franchise Agreement and other agreements with Cicis. Cicis retains the sole discretion to determine what constitutes a material obligation, and their decision is final. If the franchisee falls out of good standing, Cicis can revoke the fee reduction, requiring the franchisee to pay the remaining balance of the full Initial Franchise Fee.
Additionally, the Reopen Incentive Program Addendum may include modifications to the standard royalty fees, which would be detailed within the addendum itself, potentially offering a reduced rate for a specified initial period following the reopening. This program aims to support franchisees in revitalizing previously closed locations, ensuring brand consistency, and providing financial incentives for a successful relaunch.