What section of the Cicis Franchise Agreement is modified by the Veteran's Incentive Program Addendum regarding Royalty Fees?
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 Cicis's 2025 Franchise Disclosure Document, the Veteran's Incentive Program Addendum modifies Section 4.C of the Franchise Agreement regarding Royalty Fees. Specifically, the addendum supplements and amends Section 4.C by adding additional terms at the end of the section.
Under the Veteran’s Incentive Program, Cicis offers reduced royalty fees for a certain period. For net sales generated through the first anniversary of the restaurant's opening date, the royalty fee is calculated at 3% of those net sales, provided the franchisee remains a participant in the program and is in good standing.
However, this reduction is contingent. If the franchisee ceases to be approved for the program or falls out of good standing before the first anniversary, the royalty fee reduction becomes void without notice. In such cases, the royalty fee will revert to the standard rate as described in Section 4.C of the Franchise Agreement, without considering the addendum. This means that maintaining compliance with the program's requirements is crucial for franchisees to benefit from the reduced royalty fees offered by Cicis.