Under what circumstances can Cicis revoke the waiver of the Initial Franchise Fee for a franchisee participating in the Veterans Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to revoke the waiver 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 Initial Franchise Fee which, absent the waiver, is required under the Franchise Agreement. "Good Standing" means that you are in compliance with all material obligations under the Franchise Agreement, and you and your affiliates are in compliance with all material obligations under any other agreements between us and you or them. 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 reserves the right to revoke the waiver of the initial franchise fee for veterans participating in the Veterans Incentive Program under specific circumstances. The waiver can be revoked at any time if the franchisee is no longer approved to participate in the Program or if they cease to be in good standing. Good standing is defined as 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 considered "material" for the purpose of determining good standing, and their decision is final. This means that Cicis has significant control over whether a franchisee remains eligible for the waiver.
For a prospective Cicis franchisee participating in the Veterans Incentive Program, this implies that maintaining strict compliance with all agreements is crucial to retain the initial franchise fee waiver. Failure to meet any obligation deemed material by Cicis could result in the franchisee being required to pay the full initial franchise fee, impacting their financial obligations to the company.