Who has the sole discretion to determine whether obligations are 'material' for determining good standing in the Cicis Development Incentive Program?

According to the 2025 Cicis Franchise Disclosure Document, Cicis retains the sole discretion to determine whether particular obligations are considered "material" when assessing a franchisee's good standing within the Development Incentive Program. This decision made by Cicis is considered final.

For a prospective Cicis franchisee, this means that Cicis has the ultimate authority to decide which obligations are critical for maintaining good standing in the program. If a franchisee fails to meet what Cicis deems a "material" obligation, they risk losing the benefits of the Development Incentive Program, such as waivers on the Development Fee and Initial Franchise Fees.

This clause gives Cicis significant control over the program and the franchisees' participation. Franchisees should seek clarity from Cicis regarding what specific obligations are considered "material" to fully understand their responsibilities and avoid potential disputes. It is important to note that the determination of what constitutes a "material" obligation is subjective and entirely up to Cicis.