Under what conditions will Cicis apply the $50,000 development fee in $10,000 increments?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
centive programs:
- Development Incentive Program: If you enter into a new 5-unit Area Development Agreement and remain in good standing under all agreements with us, the initial franchise fee you pay under each Franchise Agreement you sign pursuant to the Area Development Agreement will be reduced to $10,000, and the development fee will be $50,000. We will then apply the development fee, in $10,000 increments, in full satisfaction of the initial franchise fee due under each Franchise Agreement you sign pursuant to the Area Development Agreement. To participate in this program, you must sign and satisfy the conditions under the Development Incentive Program Addendum attached as Exhibit D-1 to this Disclosure Document when you sign the Area Development Agreement or, as applicable, the Fr
Source: Item 5 — INITIAL FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the $50,000 development fee is applied in $10,000 increments under the Development Incentive Program. To qualify, a franchisee must enter into a new 5-unit Area Development Agreement and remain in good standing with Cicis under all agreements. This incentive reduces the initial franchise fee to $10,000 for each Franchise Agreement signed under the Area Development Agreement.
To participate in the Development Incentive Program, the franchisee must sign and meet the conditions outlined in the Development Incentive Program Addendum, which is attached as Exhibit D-1 to the Disclosure Document. This addendum must be signed when the Area Development Agreement or, if applicable, the Franchise Agreement is signed.
This program effectively allows franchisees to use the development fee to cover the initial franchise fees for each of the five units they commit to developing. This can be a significant benefit for franchisees looking to expand their Cicis footprint, as it reduces the upfront costs associated with each new location.