Under the Cicis Development Incentive Program, what is the reduced initial franchise fee for each franchise agreement signed pursuant to the Area Development Agreement, assuming all conditions are met?
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 Development Incentive Program offers a reduced initial franchise fee under specific conditions. If a franchisee enters into a new 5-unit Area Development Agreement and remains in good standing with Cicis, the initial franchise fee for each subsequent Franchise Agreement signed under the Area Development Agreement is reduced to $10,000. Additionally, the development fee is set at $50,000. Cicis will then apply the development fee in $10,000 increments to satisfy the initial franchise fee due for each Franchise Agreement. To participate, franchisees must sign and meet the conditions outlined in the Development Incentive Program Addendum (Exhibit D-1) when signing the Area Development Agreement or Franchise Agreement.
This incentive program can significantly lower the upfront costs for franchisees looking to expand with multiple Cicis locations. Instead of paying the standard initial franchise fee for each restaurant, the franchisee benefits from a reduced fee and a structured application of the development fee. This can improve cash flow during the initial stages of development.
However, it's crucial to note that the incentive is contingent on maintaining good standing under all agreements with Cicis. Failure to comply with the terms of the Area Development Agreement or Franchise Agreements could jeopardize the franchisee's eligibility for the reduced initial franchise fee. Prospective franchisees should carefully review the Development Incentive Program Addendum (Exhibit D-1) to fully understand the conditions and obligations.
The Development Incentive Program is just one of several incentive programs Cicis offers. The FDD also mentions a Veteran's Incentive Program and a Reopen Incentive Program, each with its own specific requirements and benefits. Franchisees should explore all available incentive programs to determine which best suits their individual circumstances and business goals.