Under what conditions is the Initial Franchise Fee reduced to $5,000 when reopening a Cicis restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
OGRAM ADDENDUM**
(Franchise Agreement)
REOPEN INCENTIVE PROGRAM ADDENDUM
(Franchise Agreement)
On Smile LLC ("we"), the "Franchisee" identified below ("you"), and your owners who have guaranteed your performance under the Franchise Agreement (collectively, the "Guarantors" and, together with us and you, the "Parties") execute this Reopen Incentive Program Addendum (the "Addendum") to supplement and amend that certain Franchise Agreement identified on Attachment A hereto (as it might have previously been amended, the "Franchise Agreement"). The Effective Date of this Addendum is the date on which we sign below. Capitalized terms used but not defined in this Addendum have the meanings given them in the Franchise Agreement. For valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
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- Restaurant History. The Restaurant identified in the Franchise Agreement was formerly operated as a Cicis Restaurant by you, your affiliate, or a third party unaffiliated with you and was permanently closed or has been temporarily closed for an extensive period. The franchise agreement that previously governed the owner's operation of the Restaurant has been terminated. You and we have entered into the Franchise Agreement to govern your ownership and operation of the previously closed Restaurant from and after the Effective Date.
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- Reopening of the Restaurant. You agree that you will, at your expense, take the actions described on Attachment A hereto to remodel and refresh the Restaurant (the "Refresh Obligations") prior to reopening the Restaurant, and you will complete the Refresh Obligations and reopen the Restaurant for regular business in accordance with the Franchise Agreement by no later than the Reopening D
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, the initial franchise fee can be reduced to $5,000 under specific conditions when reopening a Cicis restaurant. This applies when the restaurant was previously a Cicis location operated by the franchisee, an affiliate, or an unaffiliated third party, and it has since been permanently or temporarily closed for an extended period. The previous franchise agreement must have been terminated, and a new Franchise Agreement is entered into to govern the reopened restaurant.
To qualify for the reduced fee, the franchisee must commit to remodeling and refreshing the restaurant according to Attachment A of the Franchise Agreement, referred to as the Refresh Obligations. These obligations must be completed, and the restaurant must be reopened for regular business by the Reopening Deadline, also specified in Attachment A.
Furthermore, the franchisee and their affiliates must remain in good standing with Cicis. Good standing means compliance with all material obligations under the Franchise Agreement and any other agreements with Cicis. Cicis retains the sole discretion to determine what constitutes a material obligation and can revoke the fee reduction if the franchisee falls out of good standing, in which case the franchisee would be responsible for the remaining balance of the full initial franchise fee.