What entities are included in the 'Good Standing' definition for a Cicis franchisee?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Definitions. As used in this Amendment, "Good Standing" means that you, your owners, and your affiliates (if any) are not in default of the Franchise Agreement or any other agreement with us or our affiliates; and that you, your owners, and your affiliates have substantially and timely complied with all of the terms and conditions of all such agreements, including the timely satisfaction of all monetary obligations owed to us or our affiliates.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the definition of "Good Standing" includes the franchisee, their owners, and their affiliates, if any. To be considered in "Good Standing", these entities must not be in default of the Franchise Agreement or any other agreement with Cicis or its affiliates.
Furthermore, these parties must have substantially and timely complied with all the terms and conditions of all such agreements. This includes the timely satisfaction of all monetary obligations owed to Cicis or its affiliates.
Maintaining "Good Standing" is crucial for Cicis franchisees as it can affect their ability to exercise certain rights, such as terminating the Franchise Agreement early or receiving reductions in fees. Cicis retains sole discretion to determine whether particular obligations are "material" for purposes of determining good standing, and their decision will be final.