If the developer is no longer approved to participate in the Program, are they prohibited from developing Cicis restaurants?
Cicis Franchise · 2025 FDDAnswer 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)
The 2025 Cicis Franchise Disclosure Document outlines the conditions under which a developer can participate in the Development Incentive Program. If a developer is no longer approved to participate in the Program or ceases to be in good standing, Cicis reserves the right to revoke certain benefits, specifically the waivers of the Development Fee and Initial Franchise Fees. Good standing is defined as compliance with all material obligations under the Development Agreement and all Franchise Agreements. Cicis retains sole discretion in determining whether obligations are "material."
While the developer is approved and remains in good standing, Cicis waives the obligation to pay the Development Fee under the Development Agreement and the Initial Franchise Fee under the Qualifying Franchise Agreements. However, if approval is revoked or good standing is lost, the developer will be required to pay the full Development Fee and Initial Franchise Fees as originally required.
The FDD does not explicitly state that a developer is prohibited from developing Cicis restaurants if they are no longer approved for the Program. Instead, it focuses on the financial implications, namely the reinstatement of the Development Fee and Initial Franchise Fees. A prospective franchisee should clarify with Cicis whether loss of approval for the program would prevent them from developing restaurants, or simply change the financial terms.