What does 'Good Standing' mean for a Cicis franchisee participating in the Veterans Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We hereby waive your obligation to pay us an Initial Franchise Fee while you are approved to participate in the Program and remain in good standing. We reserve the right to revoke the waiver 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 Initial Franchise Fee which, absent the waiver, is required under the Franchise Agreement. "Good Standing" means that you are in compliance with all material obligations under the Franchise Agreement, and you and your affiliates are in compliance with all material obligations under any other agreements between us and you or them. 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, "Good Standing" for a franchisee participating in the Veterans Incentive Program means that the franchisee and their affiliates are in compliance with all material obligations under the Franchise Agreement. This extends to compliance with all material obligations under any other agreements between Cicis and the franchisee or their affiliates.
Cicis retains sole discretion to determine whether particular obligations are "material" for the purpose of determining good standing, and their decision is final. This means Cicis has the authority to decide what constitutes a significant breach of the agreement.
Remaining in "Good Standing" is crucial for Cicis franchisees participating in the Veterans Incentive Program because it directly affects their eligibility for benefits such as the waiver of the initial franchise fee or reductions in royalty fees. If a franchisee ceases to be in good standing, Cicis reserves the right to revoke these benefits, potentially increasing the franchisee's financial obligations.