What section of the Cicis Franchise Agreement discusses the 'Marketing Fund'?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
Marketing Fund.
We have established and may, at our option, continue a marketing fund for the purpose of promoting Cicis Restaurants, the System (and any aspect thereof), and the Marks generally and to develop tools and technology to advance that objective (the "Fund").
While the Fund exists, it will be maintained and administered by us or our designee as follows:
(1) We will direct all programs conducted, sponsored, or funded by the Fund and will have sole discretion to approve or disapprove the creative concepts, materials, media, vendors and strategies used in and in connection with all such programs and activities.
(2) We may use the Fund to pay for any activities that we determine fall within the reasonable scope of the Fund's activities and responsibilities, including (a) to reimburse our and our affiliates' expenses in administering and operating the Fund (including a reasonable allocation of the salaries of our or our affiliates' employees who perform work for the Fund), (b) to pay for any and all costs of planning, maintaining, administering, directing, preparing, and placing marketing (including the costs of preparing and placing materials), traditional and non-traditional commercial development (including new restaurant development), and media placement, and (c) to pay for the costs of product innovation, guest research, product testing, and the development, licensing, maintenance and operation of technology tools (including internet websites, intranet, and applications) to facilitate the operation of the Fund, the conduct of any of its activities, and the customer experience.
(3) All Fund Contributions will be maintained in a separate account and will not be used to defray any of our general operating expenses except as described in Section 7.C(2) above.
We will prepare an unaudited annual statement of the operations of the Fund and make the most recent statement available to you, on your written request, within 120 days after our fiscal year end.
(4) We do not undertake any obligation to make expenditures for you which are equivalent or proportionate to your Fund Contribution or to ensure that any you or any other franchisee benefits directly or pro rata from the Fund's activities.
(5) Although the Fund is intended to be of perpetual duration, we may terminate the Fund.
The Fund will not be terminated, however, until all monies in the Fund have been expended for marketing or promotional purposes or returned to all contributors, without interest, on the basis of their respective contributions.
- D.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Section 7.C of the Franchise Agreement outlines the details regarding the Marketing Fund. This section explains that Cicis has established a marketing fund to promote Cicis Restaurants, the System, and the Marks. The fund aims to develop tools and technology to advance these objectives. Cicis, or its designee, will manage and administer the Fund.
Cicis has the authority to direct all programs conducted, sponsored, or funded by the Fund, including approving creative concepts, materials, media, vendors, and strategies. The Fund can be used to cover various activities, such as reimbursing expenses for administering the Fund, covering costs related to marketing, commercial development, media placement, product innovation, guest research, product testing, and developing technology tools.
The franchisee's contributions to the Fund will be kept in a separate account and will not be used for Cicis's general operating expenses, except as described in Section 7.C(2). Cicis will prepare an unaudited annual statement of the Fund's operations and make it available to franchisees upon written request within 120 days after the fiscal year end. Cicis does not guarantee that expenditures will be equivalent or proportionate to a franchisee's contribution or that any franchisee will directly benefit from the Fund's activities. While the Fund is intended to be perpetual, Cicis reserves the right to terminate it, but only after all monies have been used for marketing or promotional purposes or returned to contributors based on their contributions, without interest.