Under what condition is the Cicis Non-Compliance Fee payable?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 5% of Net Sales for a Cicis Buffet Restaurant; 6% of Net Sales for a Cicis To Go Restaurant (subject to reduction for participation in current incentive programs). | The day of the week we specify (currently, Thursday) | See Notes 2, 3, 4, and 5 |
| Non-Compliance Fee | $250 per failure to comply with the Franchise Agreement, plus, your royalty fee will increase by one (1) percentage point until you have cured all deficiencies | On demand, the day after non- compliance occurs | Payable only if you are in default of your obligations under the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Non-Compliance Fee is payable if a franchisee is in default of their obligations under the Franchise Agreement. The fee is $250 per failure to comply with the Franchise Agreement. In addition to the fee, the royalty fee will increase by one percentage point until all deficiencies are corrected. The Non-Compliance Fee is due on demand, the day after the non-compliance occurs.
This means that if a Cicis franchisee violates any term of the Franchise Agreement, they will be assessed a $250 fee for each instance of non-compliance. Furthermore, their royalty payments will increase by 1% until the issue is resolved. This could significantly impact a franchisee's profitability if they are not careful to adhere to all requirements outlined in the Franchise Agreement.
Franchisees should carefully review the Franchise Agreement to understand their obligations and avoid incurring Non-Compliance Fees. It is also important to address any issues promptly to prevent the royalty fee from increasing. This fee structure incentivizes franchisees to maintain compliance and uphold the standards of the Cicis brand.