Under what circumstances can Cicis revoke approval of a previously approved supplier?

According to Cicis's 2025 Franchise Disclosure Document, Cicis retains significant control over its supply chain and reserves the right to revoke supplier approval under certain circumstances. Cicis may re-inspect the facilities and products of any approved supplier and revoke approval if the supplier fails to continue to meet Cicis's standards. This allows Cicis to ensure ongoing compliance with their quality and reliability requirements.

Furthermore, Cicis can revoke approval of any supplier at any time, for any reason. Cicis also has the right to designate themselves, an affiliate, or a third party as the exclusive source for any particular item. This gives Cicis broad discretion in managing its supply chain and potentially directing purchasing to preferred suppliers.

This policy has important implications for prospective Cicis franchisees. Franchisees must understand that supplier approvals are not permanent and can be changed by Cicis. This could impact a franchisee's existing relationships with suppliers or potentially increase their costs if they are required to switch to a more expensive or less convenient supplier. Franchisees do not have access to Cicis's criteria for approving suppliers, making it difficult to predict or influence these decisions. Given the high percentage (90-95%) of total costs represented by required purchases, franchisees should carefully consider the potential impact of these supplier restrictions and approval policies.