Does the Cicis Development Incentive Program Addendum prohibit any specific actions by the franchisee?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
eements, at least five (5) Cicis Pizza Restaurants. In light of your acquisition of the Development Rights and your agreement to remain in good standing (as defined below), we have agreed to allow you to participate in our Development Incentive Program (the "Program") with respect to the Development Agreement and Franchise Agreements that you or your affiliates execute pursuant to the Development Agreement from and after the Effective Date of this Addendum (the "Qualifying Franchise Agreements"). We may revoke your participation in the Program if, at any time, we determine that you no longer qualify to participate.
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- Reduction of Development and Initial Franchise Fees. Section 3 of the Development Agreement is supplemented and amended by adding the following to the end of the Section:
While you are approved to participate in the Program and provided you and your affiliates remain in good standing, we agree that the Development Fee will be reduced to $10,000 times the total number of Restaurants to be developed hereunder, and the Initial Franchise Fee under each Qualifying Franchise Agreement shall be reduced to $10,000. We reserve the right to revoke the foregoing reductions at any time you are no longer approved to participate in the Program or you ceas
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Development Incentive Program Addendum does not explicitly prohibit specific actions, but it does stipulate conditions for maintaining 'Good Standing.' Failure to comply with all material obligations under the Development Agreement, Franchise Agreements, and other agreements with Cicis can lead to revocation of the incentive program benefits.
To remain in 'Good Standing' and continue receiving the benefits of the Development Incentive Program, a Cicis franchisee and their affiliates must comply with all material obligations under the Development Agreement, the Development Schedule, and all Franchise Agreements between them and Cicis. This includes any other agreements, whether or not executed under the Development Agreement.
Cicis retains sole discretion to determine whether particular obligations are 'material' for the purpose of determining good standing, and their decision is final. If a franchisee or their affiliates fail to maintain 'Good Standing,' Cicis reserves the right to revoke the reductions to the Development Fee and Initial Franchise Fees, requiring the franchisee to pay the full amounts as outlined in the Development Agreement and Qualifying Franchise Agreements.