What section of the Cicis Franchise Disclosure Document discusses participation in marketing and promotional programs?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
7. MARKETING AND RELATED FEES
- A.
Participation in Marketing and Promotional Programs.
We may, from time to time, develop and administer marketing and sales promotion programs designed to promote and enhance the collective success of all Cicis Restaurants, including national, regional, or local programs and limited time offers (each an "LTO") that promote the brand, particular products, or gift cards and other loyalty programs (the "Marketing Programs").
You will participate in all such Marketing Programs, at your expense, in accordance with the terms and conditions we establish for each program.
- (1) All products we require you to offer under any mandatory LTO (or the ingredients for such products) will be automatically shipped to you by our designated supplier within 10 days following the announcement of the LTO unless, within such 10-day period, you have placed an order for the required products (or the ingredients for such products) with our designated supplier in quantities sufficient to satisfy our requirements for the LTO.
If you order less than the required amount, our designated supplier will automatically ship the balance to you.
Notwithstanding anything to the contrary, you shall be responsible for cost and expenses associated with your purchase or automatic supply by our designated suppliers of the products (or the ingredients for such products) and services required by you to offer any LTO.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Item 22, Section A, titled "Participation in Marketing and Promotional Programs," outlines the franchisee's role in Cicis's marketing and promotional activities. This section clarifies that Cicis may develop and administer marketing and sales promotion programs, including national, regional, or local programs and limited time offers (LTOs), to promote the brand. Franchisees are required to participate in these programs at their own expense, adhering to the terms and conditions set by Cicis for each program.
Specifically, if Cicis requires franchisees to offer certain products under a mandatory LTO, these products (or their ingredients) will be automatically shipped by a designated supplier within 10 days of the LTO announcement. However, franchisees have the option to order the required products (or ingredients) directly from the supplier in sufficient quantities within that 10-day period to meet the LTO requirements. If the franchisee orders less than the required amount, the designated supplier will automatically ship the remaining balance. Regardless of how the products are supplied, the franchisee is responsible for all costs and expenses associated with purchasing or receiving these products for the LTO.
This section of the FDD is important for prospective franchisees as it highlights the mandatory nature of participation in marketing programs and LTOs, as well as the associated costs. Franchisees need to be prepared to allocate resources for these marketing initiatives and understand the procedures for product procurement related to LTOs. The automatic shipping provision ensures compliance with marketing programs but also requires franchisees to proactively manage their inventory to avoid unnecessary shipments and costs.