How does Cicis define 'Good Standing' for participants in the Veteran's Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We hereby waive your obligation to pay us an Initial Franchise Fee while you are approved to participate in the Program and remain in good standing. We reserve the right to revoke the waiver 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 Initial Franchise Fee which, absent the waiver, is required under the Franchise Agreement. "Good Standing" means that you are in compliance with all material obligations under the Franchise Agreement, and you and your affiliates are in compliance with all material obligations under any other agreements between us and you or them. 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, 'Good Standing' within the Veteran's Incentive Program means that the franchisee is in compliance with all material obligations under the Franchise Agreement. This requirement extends to the franchisee's affiliates, who must also be in compliance with all material obligations under any other agreements between Cicis and the franchisee or their affiliates.
Cicis retains sole discretion to determine whether particular obligations are 'material' when assessing a franchisee's good standing. This determination is final, meaning a franchisee has limited recourse to challenge Cicis's decision. This broad definition and the discretion afforded to Cicis highlights the importance of understanding all obligations under the Franchise Agreement and related documents.
For a prospective Cicis franchisee participating in the Veteran's Incentive Program, maintaining 'Good Standing' is critical because it directly impacts the benefits of the program, such as the waiver of the initial franchise fee. Failure to maintain good standing can result in the revocation of these benefits, requiring the franchisee to pay the standard initial franchise fee. Therefore, franchisees should prioritize fulfilling all contractual obligations and seek clarification from Cicis regarding any potentially 'material' obligations to ensure continued participation in the program.