What is the meaning of 'Qualifying Franchise Agreements' in the context of the Cicis Veteran's Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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").
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, "Qualifying Franchise Agreements" refer to the specific franchise agreements that a veteran or their affiliates execute under the Area Development Agreement, which are eligible for the Veteran's Incentive Program. This program provides incentives such as the waiver of the Development Fee and the Initial Franchise Fee. These incentives apply only to those franchise agreements executed after the effective date of the addendum to the Area Development Agreement.
For a veteran participating in the Cicis Veteran's Incentive Program, this means that the benefits, such as waived fees, are tied directly to the franchise agreements they sign as part of their development agreement with Cicis. The franchisor, Smile LLC, approves the veteran's participation in the program based on the information provided to confirm their qualifications. If the veteran's circumstances change and they no longer meet the requirements, Cicis can revoke their participation in the program, potentially reinstating the fees that were initially waived.
It's important to note that the veteran must remain in good standing, complying with all material obligations under the Development Agreement and any Franchise Agreements. Cicis retains the sole discretion to determine what constitutes a "material" obligation, which could impact the franchisee's eligibility for the program. This conditionality highlights the importance of maintaining compliance with all agreements to continue receiving the program's benefits.
Furthermore, as long as the veteran remains approved in the program, each Qualifying Franchise Agreement will also have an amendment executed, indicating the specific benefits and modifications applicable under the Veteran's Incentive Program. This ensures that the terms of the incentive program are formally integrated into each franchise agreement, providing clarity and legal enforceability for both Cicis and the franchisee.