What is the definition of 'Good Standing' for Cicis franchisees participating in the Veterans 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" for franchisees participating in the Veterans Incentive Program means that the franchisee and their affiliates are in compliance with all material obligations under the Franchise Agreement, and all material obligations under any other agreements between them and Cicis.
Cicis retains sole discretion to determine whether particular obligations are "material" for purposes of determining good standing, and their decision is final. This gives Cicis significant control over the determination of whether a franchisee is in good standing, which could impact the franchisee's ability to participate in the Veterans Incentive Program and receive the associated benefits, such as the waiver of the initial franchise fee.
For franchisees entering into an Area Development Agreement, "Good Standing" means that the franchisee and their affiliates are in compliance with all material obligations under the Development Agreement (including the Development Schedule), all Franchise Agreements between them and Cicis, whether or not executed pursuant to the Development Agreement, and all other agreements between them and Cicis. Again, Cicis retains sole discretion to determine whether particular obligations are "material" for purposes of determining good standing, and their decision is final.
This definition of "Good Standing" is important because it affects the franchisee's eligibility for incentives like reduced Development Fees and Initial Franchise Fees. A franchisee's failure to maintain good standing can result in the revocation of these benefits, requiring the franchisee to pay the full Development Fee and Initial Franchise Fees. Prospective franchisees should carefully review all agreements and ensure they understand their obligations to maintain good standing under the Veterans Incentive Program.