What constitutes a failure to comply with the Development Schedule that could lead to termination of the Cicis Development Agreement?

According to Cicis's 2025 Franchise Disclosure Document, Cicis may terminate the Development Agreement if the developer fails to comply with the Development Schedule. Additionally, if the developer fails to make progress in developing restaurants, and Cicis determines that the developer will not be able to satisfy their development obligations for the current Development Period, Cicis has grounds for termination.

This means that a developer must adhere to the agreed-upon timeline for opening new Cicis restaurants within their designated Development Area. The Development Schedule outlines specific milestones and deadlines for opening restaurants during defined Development Periods. Failure to meet these milestones, or a lack of demonstrable progress towards meeting them, can result in Cicis terminating the agreement.

It is important to note that Cicis retains the right to determine whether sufficient progress is being made. This subjective element introduces a degree of risk for the developer, as their progress is evaluated based on Cicis's assessment. Therefore, prospective Cicis developers should carefully review the Development Schedule, assess their ability to meet its requirements, and maintain open communication with Cicis regarding their progress to avoid potential disputes or termination.