Does Smile LLC have any limitations on its discretion to determine qualifying expenses for Cicis franchisees under the reimbursement program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
If, in connection with your purchase and, if applicable, re-opening of the Restaurant, you conducted a grand opening promotion approved by us, we will reimburse you the expenses you incurred and paid in executing the grand opening promotion (less salaries and benefits paid to your owners or employees), up to the amount of the Renewal Fee you paid, if any, when you signed the Franchise Agreement. If you seek reimbursement under this paragraph, you must submit documentary proof of the paid expense within 30 days following the completion of your grand opening promotion. We reserve the right to determine, in our sole discretion, whether any submitted expense qualifies for reimbursement under this paragraph.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Smile LLC retains significant discretion in determining qualifying expenses for reimbursement under the grand opening promotion. Specifically, if a franchisee conducts a grand opening promotion approved by Cicis in connection with purchasing and re-opening a restaurant, Cicis will reimburse the franchisee for expenses incurred and paid during the promotion, up to the amount of the Renewal Fee paid. However, this reimbursement excludes salaries and benefits paid to the franchisee's owners or employees.
Importantly, Cicis explicitly reserves the right to determine, in its sole discretion, whether any submitted expense qualifies for reimbursement. This means that while Cicis offers financial support for grand opening promotions, the final decision on which expenses are eligible for reimbursement rests entirely with them.
For a prospective Cicis franchisee, this implies that while planning a grand opening promotion, it is crucial to seek pre-approval from Cicis on the types of expenses that are likely to be reimbursed. This proactive approach can help manage expectations and ensure that the franchisee does not incur costs that Cicis might later deem ineligible for reimbursement. Franchisees should maintain thorough documentation of all expenses and submit them promptly within 30 days of the grand opening promotion to maximize their chances of receiving the reimbursement.