Under what circumstances does Cicis charge a Management Fee?

Question

Accepted Answer

| Type of Fee(1)                                                         | Amount                                                            | Due Date       | Remarks                                                                                                                                                                                                                                                                                                                                                                                            |
|------------------------------------------------------------------------|-------------------------------------------------------------------|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Indemnification | Amount of damages suffered | On demand | You must indemnify, defend, and hold us, our affiliates, and our and affiliates' respective owners, directors, managers, officers, employees, agents, successors, and assignees harmless against all third party claims arising from the development or operation of your Restaurant (or by your employees, or others that arise from your employment practices). |
| Audit Fee | Cost of audit | When billed | Payable only if we find, after an audit, that you have understated any amount owed to us by more than 3% or if we decide to conduct an audit because of your failure to timely submit the required records or reports. |
| 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. |
| Insufficient Funds Fee | \$100 per occurrence | On demand | If a payment does not clear your bank, we charge a service fee of \$25, which includes the bank charge. We may draft your account for this fee. |
| Enforcement Costs | Costs awarded by the applicable court | As incurred | Payable only if you do not comply with the Franchise Agreement or Area Development Agreement, and we are the prevailing party in any relevant litigation. |
| Post-Termination / Post-Expiration De-identification Costs | Actual cost incurred by us | As incurred | If you fail to de-identify after the franchise terminates or expires, we may make the necessary changes at your expense. |
| Management Fee | 10% of Net Sales, plus costs and expenses | As incurred | If we assume management of your Restaurant upon your or your Manager Owner's death, we may charge you the Management Fee, plus the direct out-of-pocket costs and expenses incurred in the operation of the Restaurant. |

Source: Item 6 — OTHER FEES (FDD pages 14–21)

Under what circumstances does Cicis charge a Management Fee?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Type of Fee(1)	Amount	Due Date	Remarks
Indemnification	Amount of damages suffered	On demand	You must indemnify, defend, and hold us, our affiliates, and our and affiliates' respective owners, directors, managers, officers, employees, agents, successors, and assignees harmless against all third party claims arising from the development or operation of your Restaurant (or by your employees, or others that arise from your employment practices).
Audit Fee	Cost of audit	When billed	Payable only if we find, after an audit, that you have understated any amount owed to us by more than 3% or if we decide to conduct an audit because of your failure to timely submit the required records or reports.
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.
Insufficient Funds Fee	$100 per occurrence	On demand	If a payment does not clear your bank, we charge a service fee of $25, which includes the bank charge. We may draft your account for this fee.
Enforcement Costs	Costs awarded by the applicable court	As incurred	Payable only if you do not comply with the Franchise Agreement or Area Development Agreement, and we are the prevailing party in any relevant litigation.
Post-Termination / Post-Expiration De-identification Costs	Actual cost incurred by us	As incurred	If you fail to de-identify after the franchise terminates or expires, we may make the necessary changes at your expense.
Management Fee	10% of Net Sales, plus costs and expenses	As incurred	If we assume management of your Restaurant upon your or your Manager Owner's death, we may charge you the Management Fee, plus the direct out-of-pocket costs and expenses incurred in the operation of the Restaurant.