What is the significance of Jeff Hetsel's business experience, as described in Cicis's Item 2, in relation to the franchisor's obligations outlined in Item 11?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Continuing Obligations – Under Franchise Agreement
During the operation of your Location, we will:
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- Provide marketing and promotional materials we develop for local marketing, at a reasonable cost to you. We have the right to review and approve all marketing and promotional materials that you propose to use. (Franchise Agreement, Section 6.D.)
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- Provide you our System Standards and other suggested standards, specifications and procedures for operating the Restaurants. (Franchise Agreement, Section 6)
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- Provide additional training programs, seminars and other related activities (Franchise Agreement, Sections 5.F.)
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- Administer the Cicis marketing fund. (Franchise Agreement, Section 7.C.)
We may designate minimum or maximum prices at which you must sell your products if we elect, and are permitted by applicable law, to do so. (Franchise Agreement, Section 7.H)
Continuing Obligations – Under Area Development Agreement
- Review sites you propose for the development of the Restaurant and, at our discretion, accept the proposed site and execute our then-current form of Franchise Agreement with you and your approved affiliate (Area Development Agreement, Sections 2.D and Section 2.E.)
Marketing
Our Marketing Obligations
Except as described in this Item 11, we have no obligation to conduct any marketing for the System.
Marketing and Promotional Programs
You must participate in all marketing and sales promotion programs that we establish, at your expense. We may auto ship to you all products required for any mandatory limited time offer ("LTO") promotional program. Cicis To Go Restaurants may not be required to participate in certain national promotions as determined by us. We maintain a website that provides information about the System and the products that Cicis Restaurants provide ("Cicis Website").
Marketing Fund
You will be required to contribute 5% of your Cicis Restaurant's Net Sales to a marketing fund for the purpose of promoting the Cicis Restaurants, the System (and any aspect thereof), and the Marks generally and to develop tools and technology to advance that objective (the "Fund"). Cicis Restaurants owed by our affiliates also contribute to the Fund at the same rate as our franchisees.
What This Means (2025 FDD)
Based on the 2025 FDD excerpts, it's not possible to directly connect Jeff Hetsel's business experience from Item 2 to Cicis's obligations detailed in Item 11. The provided excerpts from Item 11 outline Cicis's assistance, advertising, computer systems, and training obligations to franchisees, covering pre-opening and continuing support under both the Franchise Agreement and Area Development Agreement. These obligations include site selection assistance, providing architectural plans, initial and ongoing training programs, marketing support, and maintaining system standards. However, without the content of Item 2, it's impossible to assess how Jeff Hetsel's experience might influence or relate to these specific obligations.
Item 11 specifies Cicis's responsibilities such as reviewing site proposals, providing training, and offering marketing materials. Franchisees need to understand the extent and quality of support they can expect. For example, Cicis will review proposed sites and provide architectural plans, but the franchisee is responsible for adapting these plans and securing site approval within a specific timeframe. The franchisor also provides ongoing support like marketing materials and training programs, but franchisees must participate in marketing programs at their own expense and contribute 5% of net sales to the marketing fund.
The FDD excerpts highlight the importance of the franchisee's active role in the success of their Cicis restaurant. While Cicis provides certain forms of assistance, the franchisee is responsible for managing the restaurant's operations, securing necessary approvals, and participating in marketing initiatives. The obligations related to site selection, construction, and adherence to system standards underscore the need for franchisees to be proactive and diligent in managing their business.
To fully understand the significance of Jeff Hetsel's experience, a prospective franchisee should review Item 2 of the FDD, which details the business experience of Cicis's key personnel. They should then inquire about how this experience informs the franchisor's approach to fulfilling its obligations under Item 11, particularly in areas such as training, marketing, and operational support. Understanding the expertise behind the franchisor's support systems can help franchisees assess the value and effectiveness of the assistance they will receive.