Under what conditions can Cicis terminate the marketing fund?

According to the 2025 Cicis Franchise Disclosure Document, while the marketing fund is intended to be perpetual, Cicis may terminate it under specific conditions. Cicis will not terminate the Fund until all monies have been spent for marketing or promotional purposes. Alternatively, Cicis may terminate the fund if all remaining monies are returned to the contributors, without interest, based on their respective contributions. This means that franchisees would receive a portion of the remaining funds proportional to what they contributed.

This condition protects franchisees by ensuring that the marketing funds are either fully utilized for their intended purpose of promoting the Cicis brand or returned to the franchisees who contributed to the fund. The FDD does not specify how Cicis would determine the allocation of returned funds if contributions varied significantly among franchisees or over time.

Prospective franchisees should consider this clause as a safeguard, ensuring that unspent marketing funds are not retained by Cicis if the fund is terminated. It is important to note that franchisees will not receive any interest on the returned contributions. Franchisees may want to inquire with Cicis about the historical likelihood of the marketing fund being terminated and the process for distributing remaining funds.