How is 'Good Standing' defined in the Cicis Underperforming Incentive Program Addendum?

According to Cicis's 2025 Franchise Disclosure Document, in the context of the Underperforming Incentive Program Addendum, "Good Standing" means that the franchisee and their affiliates are in compliance with all material obligations under the Franchise Agreement. Cicis retains sole discretion to determine whether particular obligations are "material," and their decision is final.

For a prospective Cicis franchisee, this definition is crucial because it directly impacts their eligibility and continued participation in the Underperforming Incentive Program. If a franchisee or their affiliates fail to meet any material obligations under the Franchise Agreement or other agreements, Cicis can revoke their participation in the program.

This discretion granted to Cicis means that even if a franchisee believes they are in compliance, Cicis can make a final determination otherwise. Therefore, franchisees must maintain meticulous compliance with all aspects of their agreements with Cicis to ensure they remain in "Good Standing" and can continue to benefit from the incentives offered under the program. This includes not only financial obligations like royalty payments but also operational and brand standard requirements.