Under the Cicis Franchise Agreement, who is responsible for expenses related to actions or obligations, unless otherwise specified?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
(5) Unless otherwise agreed in writing, you will be responsible for any and all expenses, including the costs of travel, lodging, meals, and wages, incurred by you or your personnel in connection with any training program (initial or subsequent) we provide.
(6) Notwithstanding anything to the contrary, for any training program (whether initial or additional) or national or regional conferences that we conduct, we may, in our discretion, supplement or replace in-person training with live or recorded online training modules.
G.
Legal Compliance.
Notwithstanding anything to the contrary, you shall be responsible for cost and expenses associated with your purchase or automatic supply by our designated suppliers of the products (or the ingredients for such products) and services required by you to offer any LTO.
You hereby authorize us to withdraw payment for all products automatically shipped to you by our designated suppliers on or before the payment date set forth in the supplier's invoice by EFT from your account in accordance with Section 4.H. of this Agreement.
(2) You will comply with all requirements and specifications we establish, and use all designated vendors, for each Marketing Program.
(3) We may, from time to time, provide you, without charge, certain marketing pieces regarding the Cicis® franchise opportunity.
You must display those materials in your Restaurant in accordance with our direction.
- B.
Marketing Contributions and Expenditures.
In addition to your participation in the Marketing Programs as described above, you agree to the following:
- (1) You agree to contribute 5% of your Restaurant's Net Sales to the Fund (defined below) ("Fund Contribution").
The Fund Contribution is calculated in the same manner, and will be due and payable at the same time, as the Royalty Fee.
- (2) In addition to the Fund Contribution, you must spend at least 1% of your Restaurant's Net Sales on approved marketing programs for your Restaurant in the Protected Area ("Local Marketing Spend").
We describe in the Manuals from time to time certain expenditures that will not satisfy the Local Marketing Spend unless you obtain our prior written agreement as to specific proposed expenditures.
- (3) If your Restaurant is located within an area that is or becomes covered by a Cooperative (defined below), you must contribute to the Cooperative all amounts required by the Cooperative's
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, franchisees are generally responsible for all expenses related to their actions or obligations under the franchise agreement, unless explicitly stated otherwise in writing. This broad responsibility covers various aspects of operating a Cicis restaurant.
For example, franchisees are responsible for the costs associated with training programs for themselves and their personnel, including travel, lodging, meals, and wages. They also bear the costs of purchasing products or ingredients from designated suppliers for limited-time offers (LTOs). Furthermore, franchisees are responsible for expenses related to legal compliance and decisions related to their employees, agents, and independent contractors.
This allocation of expenses to the franchisee is a common practice in franchising, as it ensures that the franchisee bears the financial burden of operating their business and complying with the franchisor's standards. However, the "unless otherwise agreed in writing" clause provides some flexibility, allowing Cicis and the franchisee to negotiate alternative arrangements in specific situations. Prospective franchisees should carefully review the franchise agreement to understand the full scope of their financial responsibilities and any potential exceptions.