What is the 'Technology and Support Fee Adjustment' for Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ent that provided for a lower royalty rate than is provided for under the current form Franchise Agreement.
- "Technology and Support Fee" is the difference between the average amount paid by the franchisees in the Data Set for Technology and Support Fee and the amount franchisees are required to pay under the current form Franchise Agreement ($100/month).
- "Advertising National Adjustment" is the difference between the average contributions paid by the franchisees in the Data Set to the Brand Fund and the amount franchisees are required to contribute under the current form Franchise Agreement (5% of Net Sales).
- "Adjusted EBITDA" means Restaurant EBITDA After minus the Royalty Adjustment, Technology and Support Fee Adjustment, and the Advertising National Adjustment necessary to bring those amounts to the current amounts required under the current form of Franchise Agreement.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 53–58)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the 'Technology and Support Fee Adjustment' is the difference between what franchisees in the data set paid on average for the Technology and Support Fee and what franchisees are currently required to pay under the current franchise agreement, which is $100 per month. This adjustment is used to account for differences in payment amounts due to older franchise agreements that may have different fee structures.
In 2024, the average monthly Technology and Support Fee Adjustment was $63, representing 0.1% of Net Company Sales. Annually, this adjustment averaged $761, also representing 0.1% of Net Company Sales. These adjustments are included in the financial performance representations to provide a standardized view of potential earnings under the current franchise agreement terms.
For a prospective Cicis franchisee, understanding these adjustments is crucial for accurately assessing potential financial performance. The Technology and Support Fee Adjustment ensures that the financial data presented reflects current fee obligations, regardless of the terms in older franchise agreements within the data set. This allows potential franchisees to evaluate the opportunity based on the financial structure they will be subject to under the current agreement.