What specific expenses are excluded from reimbursement for a Cicis franchisee's grand opening promotion under the Underperforming Incentive 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 Cicis's 2025 Franchise Disclosure Document, under the Underperforming Incentive Program, a franchisee can be reimbursed for expenses incurred during a grand opening promotion, up to the amount of the Renewal Fee paid. However, the reimbursement specifically excludes salaries and benefits paid to the franchisee's owners or employees.
This means that while Cicis will help offset the costs of the grand opening, the franchisee is responsible for covering the labor costs associated with their own staff and themselves. This is a fairly standard practice in franchising, as franchisors typically do not cover internal labor costs.
To receive reimbursement, the Cicis franchisee must provide documentary proof of the paid expenses within 30 days of completing the grand opening promotion. Cicis retains the right to determine, at its sole discretion, whether a submitted expense qualifies for reimbursement. This clause gives Cicis control over which expenses are deemed eligible, so franchisees should ensure that all expenses are pre-approved and well-documented to maximize their chances of reimbursement.