What does 'Good Standing' mean for a Cicis franchisee under the Reopen Incentive Program Addendum?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
te, or a third party unaffiliated with you and was permanently closed or has been temporarily closed for an extensive period. The franchise agreement that previously governed the owner's operation of the Restaurant has been terminated. You and we have entered into the Franchise Agreement to govern your ownership and operation of the previously closed Restaurant from and after the Effective Date.
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- Reopening of the Restaurant. You agree that you will, at your expense, take the actions described on Attachment A hereto to remodel and refresh the Restaurant (the "Refresh Obligations") prior to reopening the Restaurant, and you will complete the Refresh Obligations and reopen the Restaurant for regular business in accordance with the Franchise Agreement by no later than the Reopening D
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, specifically Exhibit D-3 Reopen Incentive Program Addendum, 'Good Standing' for a franchisee and their affiliates means compliance with all material obligations under the Franchise Agreement and all other agreements between Cicis and the franchisee or their affiliates.
Cicis retains sole discretion to determine which obligations are 'material' when assessing a franchisee's good standing, and their decision is final. This definition applies when determining eligibility for incentives such as the reduction of the initial franchise fee to $5,000. Cicis reserves the right to revoke this reduction if a franchisee ceases to be in good standing, requiring them to pay the balance of the full initial franchise fee.
In practical terms, a Cicis franchisee must diligently meet all requirements outlined in their agreements with Cicis to maintain 'Good Standing' and benefit from the Reopen Incentive Program. This includes, but isn't limited to, adhering to operational standards, meeting financial obligations, and complying with all brand guidelines. Failure to comply with these obligations could result in the loss of incentives and additional financial burdens.