What does the 'Technology and Support Fee' represent for Cicis franchisees?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
paid by the restaurant.
- "Royalty Expenses" means the aggregate amount of royalty paid by the franchisee.
- "Technology and Support Fee" means the aggregate amount of technology fees actually paid to us by the franchisee.
- "Restaurant EBITDA After" means Restaurant EBITDA Before after deductions for the Royalty and the Technology and Support Fees actually paid by the restaurant.
- "Royalty Adjustment" is the difference between the average amount paid by the franchisees in the Data Set for Royalty Expense and the amount franchisees are required to pay under the current form Franchise Agreement (5%). The reason for the difference is that some franchisees in the Data Set are subject to older forms of Franchise Agreement 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).
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 represents the aggregate amount of technology fees actually paid to Cicis by the franchisee. The FDD also uses the term 'Technology and Support Fee Adjustment,' which is defined as the difference between the average amount paid by franchisees in the data set for the Technology and Support Fee and the amount franchisees are required to pay under the current franchise agreement, which is $100 per month.
In 2024, the average annual Technology and Support Fee paid by franchisees in the data set was $439, representing 0.0% of Net Company Sales. The Technology and Support Fee Adjustment was $761, representing 0.1% of Net Company Sales. On a monthly basis, the average Technology and Support Fee was $37, also representing 0.0% of Net Company Sales, while the Technology and Support Fee Adjustment was $63, representing 0.1% of Net Company Sales.
It's important to note that some franchisees in the data set may be subject to older franchise agreements that provide for lower payment amounts than those in the current agreement. To account for these differences, Cicis includes adjustments in the tables to reflect the Royalty and Technology and Support Fee required under the current franchise agreement. This adjustment ensures a standardized comparison of financial performance across all franchisees, regardless of their specific agreement terms.