Under what conditions can Cicis assess a data collection fee?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to submit, the foregoing information or report required by us we may, after first providing written notice and a reasonable opportunity to cure (which need not exceed 10 days), assess a reasonable data collection fee for so long as the information or report remains outstanding. Our assessment and collection of the data collection fee will be in addition to all other rights and remedies we have.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis can assess a reasonable data collection fee if a franchisee fails to submit required information or reports. Prior to assessing the fee, Cicis must provide written notice to the franchisee and a reasonable opportunity to correct the issue, which need not exceed 10 days.
This data collection fee is in addition to any other rights and remedies that Cicis may have. This means that Cicis can pursue other actions to address the franchisee's failure to provide the required information, such as legal action or termination of the franchise agreement, in addition to collecting the data fee.
It is important for prospective franchisees to understand the specific records and reporting requirements outlined in the franchise agreement and to ensure they can meet these obligations to avoid incurring data collection fees. Franchisees should clarify with Cicis what constitutes "reasonable" in terms of the data collection fee amount, and what specific information and reports are subject to this fee.