Under what circumstances related to application materials can Cicis terminate the Development Agreement?

According to Cicis's 2025 Franchise Disclosure Document, Cicis can terminate the Development Agreement if the franchisee (or any of their owners) has made or makes any material misrepresentation or omission in the Application Materials. This termination is effective immediately upon written notice to the franchisee.

In essence, Cicis relies on the accuracy and completeness of the information provided in the Application Materials when deciding to grant Development Rights. These materials include details about the franchisee's background, experience, skills, financial condition, and resources. If Cicis discovers that the franchisee provided false or incomplete information that is considered material, Cicis has the right to terminate the agreement.

For a prospective Cicis franchisee, this underscores the importance of being truthful and thorough when completing the application. Any exaggeration, omission, or misstatement, no matter how small it may seem, could potentially lead to the termination of the Development Agreement. Franchisees should carefully review all information provided to Cicis and ensure its accuracy.

This termination clause is a standard practice in franchising, as franchisors need to rely on the information provided by potential franchisees to assess their suitability and protect the brand. Franchisees should seek legal counsel to fully understand the implications of this clause and ensure they are in full compliance with the terms of the Development Agreement.