Is the decision on 'material' obligations final for the Cicis Veteran's Incentive Program?

According to Cicis's 2025 Franchise Disclosure Document, participation in the Veteran's Incentive Program requires franchisees to remain in "good standing," which means compliance with all material obligations under the Franchise Agreement and other agreements. Cicis retains sole discretion to determine whether particular obligations are "material" for the purposes of determining good standing. Their decision on whether an obligation is material is final. This applies to both the standard Franchise Agreement and Area Development Agreements.

For a prospective Cicis franchisee, this means that Cicis has the ultimate authority to decide what constitutes a material breach of the franchise agreement. If Cicis determines that a franchisee has failed to meet a material obligation, the franchisee could lose the benefits of the Veteran's Incentive Program, such as the waiver of the initial franchise fee.

This clause gives Cicis significant power in interpreting and enforcing the franchise agreement. Franchisees should carefully review the franchise agreement and seek legal counsel to understand their obligations and the potential consequences of non-compliance. Understanding what Cicis considers "material" is crucial for maintaining good standing and retaining the benefits of the Veteran's Incentive Program.