What happens if Cicis determines that a developer no longer qualifies for the Veteran's Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ur Veterans Incentive Program (the "Program") and, in support of your request, have provided us with information, whether as part of the Application Materials or separately (the "Supporting Information"), to confirm your qualifications to participate in the Program. You represent and warrant to us that the Supporting Information is true and correct and that you satisfy all of our requirements for participation in the Program. In reliance on the foregoing, we approve your participation in the Program with respect to Franchise Agreements that you or your affiliates execute pursuant to the Development Agreement from and after the Effective Date of this Addendum (the "Qualifying Franchise Agreements"). You must promptly notify us, in writing, if any of the Supporting Information changes or ceases to be true and correct. We may revoke your participation in the Program if, at any time, we determine that you no longer qualify for participation.
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- Waiver of Development Fee. 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.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if Cicis determines that a developer no longer qualifies for the Veteran's Incentive Program, Cicis may revoke the developer's participation in the Program. If participation is revoked or the developer ceases to be in good standing, Cicis reserves the right to revoke waivers of the Development Fee under the Development Agreement and the Initial Franchise Fee under the Qualifying Franchise Agreements.
In the event that Cicis revokes the waivers, the developer will be required to pay the Development Fee and Initial Franchise Fees, which would have been required without the waivers under the Development Agreement and Qualifying Franchise Agreements. Good standing is defined as compliance with all material obligations under the Development Agreement and all Franchise Agreements between Cicis and the developer or their affiliates, whether or not executed pursuant to the Development Agreement.
Cicis retains sole discretion to determine whether particular obligations are considered "material" for the purpose of determining good standing, and their decision is final. Additionally, if the developer ceases to be approved to participate in the Program or is not in good standing prior to the 1st anniversary of the Opening Date, a reduction in the Royalty Fee will automatically become null and void, and the Royalty Fee will be calculated as described in Section 4.C of the Franchise Agreement without regard to the reduction.