What section of the Cicis Franchise Agreement is modified for franchisees participating in the Veterans Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- Modification of Royalty Fees. Section 4.C of the Franchise Agreement is supplemented and amended by adding the following to the end of the Section:
Provided you remain a participant in the Program (as we determine in our sole discretion) and are in good standing, for Net Sales generated through the 1st anniversary of the Opening Date of the Restaurant, the Royalty Fee will be calculated at 3% of those Net Sales. If, at any time prior to the 1st anniversary of the Opening Date, you cease to be either approved to participate in the Program or in good standing, the foregoing Royalty Fee reduction will automatically, and without any further notice, be null and void, and the Royalty Fee will thereafter be calculated as described in Section 4.C without regard to this paragraph.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Section 4.C of the Franchise Agreement, which pertains to royalty fees, is modified for franchisees participating in the Veterans Incentive Program. Specifically, a Veteran's Incentive Program Addendum supplements and amends Section 4.C.
For Cicis franchisees who participate in the Veterans Incentive Program and remain in good standing, the royalty fee is calculated at a reduced rate of 3% of Net Sales for the first year following the restaurant's opening. This is a notable benefit for veterans as it lowers their initial costs.
However, this reduced royalty fee is contingent on the franchisee's continued participation in the Veterans Incentive Program and their maintenance of good standing. If a franchisee ceases to be approved for the program or falls out of good standing before the first anniversary of the restaurant's opening date, the royalty fee will revert to the standard rate as outlined in Section 4.C of the Franchise Agreement, without any prior notice. This condition underscores the importance of adhering to the terms of the Franchise Agreement and the Veterans Incentive Program to maintain the reduced royalty fee.