What constitutes 'Good Standing' for a Cicis franchisee participating in the Veteran's Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
While you are approved to participate in the Program and remain in good standing, we hereby waive your obligation to pay us a Development Fee under the Development Agreement and an Initial Franchise Fee under the Qualifying Franchise Agreements.
We reserve the right to revoke the waivers at any time you are either no longer approved to participate in the Program or cease to be in good standing, in which case, you will pay us the Development Fee and Initial Franchise Fees which, absent the waivers, are required under the Development Agreement and Qualifying Franchise Agreements, as applicable. "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, a franchisee participating in the Veteran's Incentive Program must maintain 'Good Standing' to retain the benefits of the program. For franchisees entering into an Area Development Agreement, 'Good Standing' means that the franchisee and their affiliates must comply with all material obligations under the Development Agreement, all Franchise Agreements between Cicis and the franchisee or their affiliates (whether or not executed under the Development Agreement), and all other agreements between Cicis and the franchisee or their affiliates.
For franchisees entering into a standard Franchise Agreement, 'Good Standing' means that the franchisee is in compliance with all material obligations under the Franchise Agreement, and the franchisee and their affiliates are in compliance with all material obligations under any other agreements between Cicis and them.
Cicis retains sole discretion to determine whether particular obligations are 'material' for determining 'Good Standing,' and their decision is final. Failure to maintain 'Good Standing' can result in the revocation of incentives such as the waiver of the Development Fee and Initial Franchise Fee, or modifications to Royalty Fees, potentially increasing the financial burden on the franchisee.