Can Cicis change the requirements for 'Good Standing' during the term of the Development Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
"Good Standing" means that you and your affiliates, as applicable, are in compliance with all material obligations under the Development Agreement and all Franchise Agreements between us and you or them, whether or not executed pursuant to the Development Agreement.
You agree that we will have sole discretion to determine whether particular obligations are "material" for purposes of determining good standing, and our decision will be final.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the company retains the sole discretion to determine what constitutes "material" obligations for the purposes of assessing a franchisee's good standing within the Development Incentive Program. This determination is final.
For a prospective Cicis franchisee, this means that Cicis has the power to interpret and define the requirements for maintaining 'Good Standing' during the term of the Development Incentive Program. The franchisee agrees to accept Cicis's judgment on whether they are meeting the obligations deemed material for remaining in good standing.
This clause carries significant implications. If Cicis changes its interpretation of what constitutes a 'material obligation,' a franchisee could find themselves out of compliance and potentially lose the benefits of the Development Incentive Program, such as waivers on development and initial franchise fees. Therefore, it is crucial for franchisees to maintain open communication with Cicis and seek clarification on any obligations that may be subject to interpretation or change. Franchisees should also document their compliance efforts to protect their interests in case of disputes.