What constitutes 'Good Standing' for participation in the Cicis Development Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
eements, at least five (5) Cicis Pizza Restaurants. In light of your acquisition of the Development Rights and your agreement to remain in good standing (as defined below), we have agreed to allow you to participate in our Development Incentive Program (the "Program") with respect to the Development Agreement and Franchise Agreements that you or your affiliates execute pursuant to the Development Agreement from and after the Effective Date of this Addendum (the "Qualifying Franchise Agreements"). We may revoke your participation in the Program if, at any time, we determine that you no longer qualify to participate.
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- Reduction of Development and Initial Franchise Fees. Section 3 of the Development Agreement is supplemented and amended by adding the following to the end of the Section:
While you are approved to participate in the Program and provided you and your affiliates remain in good standing, we agree that the Development Fee will be reduced to $10,000 times the total number of Restaurants to be developed hereunder, and the Initial Franchise Fee under each Qualifying Franchise Agreement shall be reduced to $10,000. We reserve the right to revoke the foregoing reductions at any time you are no longer approved to participate in the Program or you ceas
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, maintaining 'Good Standing' within the Development Incentive Program requires franchisees and their affiliates to comply with all material obligations under the Development Agreement, Franchise Agreements, and any other agreements with Cicis. This applies whether or not the Franchise Agreements were executed as part of the Development Agreement.
Cicis retains the sole discretion to determine which obligations are considered 'material' for assessing good standing, and their decision is final. This gives Cicis significant control over the program and the franchisee's continued eligibility.
For a prospective Cicis franchisee, this means that participation in the Development Incentive Program, including benefits like reduced fees, is contingent on strict adherence to all agreements and the franchisor's subjective assessment of 'material' obligations. Franchisees should seek clarity on what Cicis considers 'material' to minimize the risk of losing incentive benefits. The Development Schedule is specifically included as a material obligation.