Under the agreement with CiCi Enterprises, LP, what is Cicis entitled to receive in exchange for servicing all franchise agreements?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
On March 10, 2021, the Company entered into an agreement with CiCi Enterprises, LP, pursuant to which the Company has agreed, at its expense, to service all franchise agreements under which CiCi Enterprises, LP is franchisor in exchange for which the Company is entitled to receive all royalties, marketing fund contributions and other fees owed by franchisees under these agreements.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis entered into an agreement with CiCi Enterprises, LP, on March 10, 2021. Under this agreement, Cicis is responsible for servicing all franchise agreements where CiCi Enterprises, LP, acts as the franchisor. In exchange for providing these services, Cicis is entitled to receive all royalties, marketing fund contributions, and other fees that franchisees owe under these agreements.
For a prospective franchisee, this means that the royalties, marketing fund contributions, and other fees they pay do not go directly to CiCi Enterprises, LP. Instead, these payments are directed to Cicis in return for their management and servicing of the franchise agreements. This arrangement centralizes the financial aspects of the franchising system with Cicis.
This agreement ensures that Cicis benefits directly from the financial obligations of its franchisees, as it receives all royalties and fees in exchange for managing the franchise agreements. This setup could incentivize Cicis to provide better support and services to franchisees, as its revenue is directly tied to the performance and financial contributions of the franchise network.