Under what conditions does Cicis offer incentive programs to franchisees?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
centive Programs:
From time to time, we reward franchisees for certain performance through incentive programs that result in lower fees that are required to be paid to us. These programs are voluntary, and if we offer them, we reserve the right to determine how long and under what conditions they will be offered. We reserve the right to suspend or terminate the offer to participate in any incentive program at any time. As of the date of this Disclosure Document, we are offering the following incentive 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 Franchise Agreement.
- Veteran's Incentive Program: If you or your owners are active members of, or were honorably discharged from, the United States armed forces and remain in good standing under all agreements with us, then we will waive your obligation to pay the development
fee under any new Area Development Agreement and the obligation to pay an initial franchise fee under any new Franchise Agreement. To participate in this program, you must sign and satisfy the conditions under the Veteran's Incentive Program Addendum attached as Exhibit D-2 to this Disclosure Document when you sign the Area Development Agreement or, as applicable, the Franchise Agreement.
• Reopen Incentive Program: Under this program, if you agree to reopen a closed Cicis Restaurant, your initial franchise fee under the new Franchise Agreement for that Cicis Restaurant will be reduced to $5,000. If you qualify for the Reopen Incentive Program, you must sign and satisfy the conditions under the Reopen Incentive Program Addendum in the form attached as Exhibit D-3 to this Disclosure Document when you sign the Franchise Agreement for the applicable
Source: Item 5 — INITIAL FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis offers incentive programs to franchisees from time to time for certain performance achievements. These programs may result in lower fees. Cicis retains the right to determine the duration and conditions of these programs, and can suspend or terminate participation at any time. As of the date of the FDD, Cicis is offering three specific incentive programs: the Development Incentive Program, the Veteran's Incentive Program, and the Reopen Incentive Program.
Under the Development Incentive Program, if a franchisee enters into a new 5-unit Area Development Agreement and remains in good standing, the initial franchise fee under each Franchise Agreement is reduced to $10,000, and the development fee will be $50,000. Cicis will apply the development fee in $10,000 increments to satisfy the initial franchise fee due under each Franchise Agreement. Participation requires signing and satisfying the conditions of the Development Incentive Program Addendum.
The Veteran's Incentive Program waives the development fee under any new Area Development Agreement and the initial franchise fee under any new Franchise Agreement for franchisees or their owners who are active members of, or were honorably discharged from, the United States armed forces and remain in good standing. Participation requires signing and satisfying the conditions of the Veteran's Incentive Program Addendum.
Finally, the Reopen Incentive Program reduces the initial franchise fee to $5,000 for franchisees who agree to reopen a closed Cicis Restaurant. To qualify, franchisees must sign and satisfy the conditions under the Reopen Incentive Program Addendum. Each of these programs requires the franchisee to sign an addendum to the franchise agreement.