factual

What fees are waived for Cicis developers approved to participate in the Veteran's Incentive Program?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

While you are approved to participate in the Program and remain in good standing, we hereby waive your obligation to pay us a Development Fee under the Development Agreement and an Initial Franchise Fee under the Qualifying Franchise Agreements.

We reserve the right to revoke the waivers at any time you are either no longer approved to participate in the Program or cease to be in good standing, in which case, you will pay us the Development Fee and Initial Franchise Fees which, absent the waivers, are required under the Development Agreement and Qualifying Franchise Agreements, as applicable. "Good Standing" means that you and your affiliates, as applicable, are in compliance with all material obligations under the Development Agreement and all Franchise Agreements between us and you or them, whether or not executed pursuant to the Development Agreement.

You agree that we will have sole discretion to determine whether particular obligations are "material" for purposes of determining good standing, and our decision will be final.

Source: Item 23 — RECEIPTS (FDD pages 65–263)

What This Means (2025 FDD)

According to Cicis's 2025 Franchise Disclosure Document, developers approved for the Veteran's Incentive Program may receive waivers for certain fees. Specifically, Cicis will waive the Development Fee required under the Area Development Agreement, as well as the Initial Franchise Fee typically required under the Qualifying Franchise Agreements. This waiver is contingent upon the developer remaining approved in the Veteran's Incentive Program and maintaining good standing with Cicis.

However, Cicis retains the right to revoke these waivers if the developer is no longer approved for the program or ceases to be in good standing. Should this occur, the developer would then be responsible for paying the full Development Fee and Initial Franchise Fees as outlined in the Development Agreement and Qualifying Franchise Agreements. Good standing is defined by Cicis as compliance with all material obligations under the Development Agreement and all Franchise Agreements between Cicis and the developer or their affiliates.

It's important to note that Cicis has sole discretion in determining whether particular obligations are considered "material" for the purpose of assessing good standing, and their decision is final. This means that a Cicis franchisee's participation in the Veteran's Incentive Program, and the associated fee waivers, are subject to Cicis's ongoing assessment of their compliance with all agreements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.