Who determines whether obligations are 'material' for determining good standing in Cicis' Veterans Incentive Program?

According to Cicis's 2025 Franchise Disclosure Document, Cicis has the sole discretion to determine whether particular obligations are considered "material" when assessing a franchisee's good standing within the Veterans Incentive Program. This determination is final.

For a Cicis franchisee participating in the Veterans Incentive Program, maintaining 'good standing' is crucial because it affects eligibility for benefits such as waivers of the initial franchise fee or development fee and modifications to royalty fees. If Cicis determines that a franchisee is not in good standing due to a failure to meet material obligations, the franchisee could lose these incentives and be required to pay the standard fees.

This level of discretion afforded to Cicis means that franchisees need to fully understand and comply with all aspects of their agreements. While some obligations may seem minor, Cicis has the authority to deem them material, which could impact a franchisee's participation in the Veterans Incentive Program and associated financial benefits. Prospective franchisees should seek clarity from Cicis regarding what specific obligations are considered material to ensure they can maintain good standing and continue to receive the program's benefits.