Is there a specific deadline mentioned in the Cicis Development Incentive Program Addendum for maintaining good standing to receive the reduced royalty fee?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Provided you remain a participant in the Program (as we determine in our sole discretion) and are in good standing, for Net Sales generated through the 1st anniversary of the Opening Date of the Restaurant, the Royalty Fee will be calculated at 3% of those Net Sales; and for Net Sales generated from the day following the 1st anniversary of the Opening Date through the 2nd anniversary of the Opening Date, the Royalty Fee will be calculated at 4% of those Net Sales. If, at any time prior to the 2nd anniversary of the Opening Date, you cease to be either approved to participate in the Program or in good standing, the foregoing Royalty Fee reductions will automatically, and without any further notice, be null and void, and the Royalty Fee will thereafter be calculated as described in Section 4.C without regard to this paragraph.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Development Incentive Program Addendum specifies deadlines for maintaining good standing to receive reduced royalty fees. If a franchisee remains a participant in the program and maintains good standing, they will receive a reduced royalty fee for a defined period.
Specifically, for net sales generated through the first anniversary of the restaurant's opening date, the royalty fee is calculated at 3% of those net sales. Furthermore, for net sales generated from the day following the first anniversary through the second anniversary of the opening date, the royalty fee is calculated at 4%.
However, if at any time before the second anniversary of the opening date, the franchisee ceases to be approved for participation in the program or falls out of good standing, these royalty fee reductions become null and void automatically and without notice. After that point, the royalty fee will be calculated as described in the standard franchise agreement, without regard to the incentive program's terms.