What specific agreements are included when determining if a Cicis franchisee, their owners, or affiliates are in default for the purposes of 'Good Standing'?

According to the 2025 Cicis Franchise Disclosure Document, a franchisee, their owners, and their affiliates must be in compliance with several agreements to maintain 'Good Standing.' These agreements include the Development Agreement, all Franchise Agreements between Cicis and the franchisee or their affiliates (whether or not executed under the Development Agreement), and all other agreements between Cicis and the franchisee or their affiliates.

Maintaining 'Good Standing' is crucial for Cicis franchisees because it affects their eligibility for certain benefits and incentives. For instance, franchisees in 'Good Standing' may receive a reduction of the Development Fee to $10,000 times the number of restaurants to be developed and a reduction of the Initial Franchise Fee under each Qualifying Franchise Agreement to $10,000. Cicis retains the right to revoke these reductions if a franchisee ceases to be in 'Good Standing,' requiring the franchisee to pay the full Development Fee and Initial Franchise Fees.

Cicis maintains sole discretion in determining whether particular obligations are 'material' for assessing 'Good Standing,' and their decision is final. This highlights the importance of franchisees understanding and adhering to all agreements with Cicis to avoid potential penalties and maintain eligibility for benefits.