Can Cicis revoke the waivers of the Development Fee and Initial Franchise Fee at any time?
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)
According to Cicis's 2025 Franchise Disclosure Document, Cicis may revoke waivers of the Development Fee and Initial Franchise Fee under specific circumstances. For instance, under the Development Incentive Program Addendum, Cicis can revoke the reduction of these fees if a franchisee is no longer approved to participate in the program or ceases to be in good standing. Good standing is defined as compliance with all material obligations under the Development Agreement, Franchise Agreements, and other agreements between Cicis and the franchisee or their affiliates. Cicis retains sole discretion to determine what constitutes a 'material' obligation, and their decision is final.
Similarly, for veterans participating in the Veterans Incentive Program, Cicis can revoke the waiver of the Initial Franchise Fee if the franchisee is no longer approved for the program or ceases to be in good standing. Again, good standing is defined as compliance with all material obligations under the Franchise Agreement and other agreements. Cicis maintains the sole discretion to determine what constitutes a 'material' obligation, and their decision is final.
For franchisees reopening a previously closed Cicis restaurant, a reduction of the Initial Franchise Fee to $5,000 is offered, but Cicis reserves the right to revoke this reduction if the franchisee ceases to be in good standing. In this context, good standing 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 whether particular obligations are 'material' for purposes of determining good standing, and their decision will be final.
These provisions highlight that while Cicis offers incentives such as waivers or reductions of fees, these are contingent on maintaining good standing and compliance with all agreements. The broad discretion Cicis holds in determining what constitutes a material obligation and good standing means that franchisees must diligently adhere to all requirements to avoid potential revocation of these financial incentives. Prospective franchisees should carefully review all agreements and seek clarification on the specific obligations to ensure they can maintain good standing and continue to benefit from the fee waivers or reductions.