Is the determination of 'good standing' by Cicis subject to appeal?

According to Cicis's 2025 Franchise Disclosure Document, Cicis retains the sole discretion to determine whether a franchisee is in 'good standing,' and that determination is final. This definition of 'good standing' is relevant because several benefits under various Cicis programs, such as the Veterans Incentive Program or Development Incentive Program, are contingent upon a franchisee and their affiliates remaining in good standing. These benefits can include waivers or reductions of the initial franchise fee or development fees.

'Good standing' is defined as compliance with all material obligations under the Franchise Agreement and any other agreements between the franchisee and Cicis. Cicis explicitly reserves the right to revoke any waivers or reductions of fees if a franchisee ceases to be in good standing. This could have significant financial implications for a franchisee if they are relying on these incentives to operate their business.

The fact that Cicis's determination of 'good standing' is final means a franchisee has no recourse to appeal the decision, even if they believe it to be unfair or incorrect. This places a significant amount of power in the hands of the franchisor. Prospective franchisees should carefully consider this provision and ensure they fully understand their obligations under all agreements with Cicis to minimize the risk of losing the benefits associated with maintaining 'good standing.'