What is the dependency between participation in the Cicis Veterans Incentive Program and the waiver of the initial franchise fee?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Waiver of Initial Franchise Fee. 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, the waiver of the initial franchise fee is directly tied to participation and good standing in the Veterans Incentive Program. To qualify for the waiver, a prospective Cicis franchisee must meet all requirements for the program and provide accurate supporting information. Cicis retains the right to revoke participation in the program, which would then obligate the franchisee to pay the standard initial franchise fee.
To maintain eligibility for the waiver, the franchisee must remain in "good standing," defined as compliance with all material obligations under the Franchise Agreement and any other agreements with Cicis. Cicis has sole discretion in determining what constitutes a "material" obligation, adding a layer of potential risk for the franchisee. This means that even if a franchisee is initially granted a waiver of the initial franchise fee through the Veterans Incentive Program, Cicis can reinstate the fee if the franchisee fails to maintain good standing or if Cicis determines the franchisee no longer qualifies for the program.
For Area Development Agreements, Cicis also waives the Development Fee while the developer is approved to participate in the Veterans Incentive Program and remains in good standing. However, Cicis reserves the right to revoke these waivers if the developer is no longer approved or ceases to be in good standing, at which point the developer would be required to pay both the Development Fee and the Initial Franchise Fees. The definition of "Good Standing" in the context of Area Development Agreements includes compliance with all material obligations under the Development Agreement and all Franchise Agreements, whether or not executed pursuant to the Development Agreement.