What triggers the Insurance Fee for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance Fee | $250, plus actual cost of obtaining the insurance coverage | When billed | If you fail to maintain the required insurance, we have the right, but not the obligation, to obtain it for you. If we do, we will charge you a fee plus the cost of the insurance. |
Source: Item 6 — OTHER FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Insurance Fee is triggered if a franchisee fails to maintain the required insurance coverage. In such a case, Cicis has the right, but not the obligation, to obtain the necessary insurance coverage on behalf of the franchisee.
If Cicis opts to secure insurance for the franchisee, the franchisee will be charged an Insurance Fee. This fee consists of $250, in addition to the actual cost Cicis incurs to obtain the insurance coverage. The fee is due when billed by Cicis.
This policy ensures that all Cicis restaurants maintain adequate insurance, protecting both the franchisee and the franchisor from potential liabilities. It is crucial for prospective franchisees to understand the insurance requirements outlined in the Franchise Agreement to avoid incurring this additional fee. Maintaining the required insurance is the franchisee's responsibility, and failure to do so can result in Cicis stepping in to secure coverage and passing the costs on to the franchisee.