What are 'Qualifying Franchise Agreements' in the context of the Cicis Development Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
In light of your acquisition of the Development Rights and your agreement to remain in good standing (as defined below), we have agreed to allow you to participate in our Development Incentive Program (the "Program") with respect to the Development Agreement and 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"). We may revoke your participation in the Program if, at any time, we determine that you no longer qualify to participate.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Qualifying Franchise Agreements are Franchise Agreements that a developer or their affiliates execute pursuant to the Development Agreement from and after the effective date of the Development Incentive Program Addendum. These agreements are specifically tied to Cicis's Development Incentive Program.
Under the Development Incentive Program, Cicis may offer incentives such as a reduction of the initial franchise fee to $10,000. However, Cicis retains the right to revoke participation in the program if the developer or their affiliates are no longer in good standing, meaning they are not in compliance with all material obligations under the Development Agreement, Franchise Agreements, or other agreements with Cicis.
Furthermore, as each Qualifying Franchise Agreement is executed, both Cicis and the developer (or their affiliate) will also execute an amendment to the agreement, using a form attached as Attachment A to the addendum. This amendment is contingent on the developer's continued approval and participation in the Development Incentive Program, as determined solely by Cicis.