What is the 'Effective Date' of the Development Incentive Program Addendum for Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
es) is delinquent in payment of any amounts guaranteed hereunder, that no dividends or distributions may be made by such Guarantor (or on such Guarantor's account) to its owners, accountholders or beneficiaries or otherwise, for so long as such delinquency exists, subject to applicable law.
IN WITNESS WHEREOF, each of the undersigned has affixed his or her signature on the same day and year as this Guaranty and Assumption of Obligations was executed.
| GUARANTOR(S) | SPOUSE(S) |
|---|---|
| Name: | Name: |
| Sign: | Sign: |
| Address: | Address: |
| Name: | Name: |
| Sign: | Sign: |
| Address: | Address: |
EXHIBIT D-1 DEVELOPMENT INCENTIVE PROGRAM ADDENDUM
(Area Development Agreement)
DEVELOPMENT INCENTIVE PROGRAM ADDENDUM
(Area Development Agreement)
On Smile LLC ("we") and the "Developer" identified below ("you" and, together with us, the "Parties") execute this Development Incentive Program Addendum (the "Addendum") to supplement and amend that certain Area Development Agreement they have executed immediately prior to the execution of this Addendum (as it might have otherwise been amended, the "Development Agreement"). The "Effective Date" of this Addendum is the Effective Date of the Development Agreement. Capitalized terms used but not defined in this Addendum have the meanings given them in the Development Agreement. For valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
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- Approval to Participate in Development Incentive Program.
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's effective date is tied to another agreement. Specifically, for the Area Development Agreement, the addendum's effective date is the same as the effective date of the Area Development Agreement itself. For the Franchise Agreement, the Development Incentive Program Addendum's effective date is the same as the effective date of the Franchise Agreement.
This means that the incentive program becomes active simultaneously with the signing of either the Area Development Agreement or the Franchise Agreement, depending on which type of agreement the addendum is attached to. This ensures that the benefits of the incentive program are available to the franchisee from the outset of their relationship with Cicis, provided they meet the program's requirements.
For a prospective Cicis franchisee, this implies that the financial incentives, such as reduced fees or royalties, become applicable as soon as the franchise or development agreement takes effect. However, participation in the program and the continuation of its benefits are contingent upon remaining in good standing with Cicis and adhering to all material obligations outlined in the agreements. Cicis retains the right to revoke participation in the program if these conditions are not met.