Under what conditions can Cicis revoke a franchisee's participation in the Veterans Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Representations Regarding Veteran Status. You have asked to participate in our Veterans Incentive Program (the "Program") and, in support of your request, have provided us with information, whether as part of the Application Materials or separately (the "Supporting Information"), to confirm your qualifications to participate in the Program. You represent and warrant to us that the Supporting Information is true and correct and that you satisfy all of our requirements for participation in the Program. In reliance on the foregoing, we approve your participation in the Program with respect to Franchise Agreement. You must promptly notify us, in writing, if any of the Supporting Information changes or ceases to be true and correct. We may revoke your participation in the Program if, at any time, we determine that you no longer qualify for participation.
-
- Waiver of Initial Franchise Fee. We hereby waive your obligation to pay us an Initial Franchise Fee while you are approved to participate in the Program and remain in good standing. 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 may revoke a franchisee's participation in the Veterans Incentive Program if they determine that the franchisee no longer qualifies for participation. This determination can be made at any time. Additionally, Cicis can revoke the waiver of the initial franchise fee if the franchisee is no longer approved to participate in the program or ceases to be in good standing. Good standing is defined as compliance with all material obligations under the Franchise Agreement and any other agreements between the franchisee and Cicis.
The FDD states that Cicis has sole discretion to determine whether particular obligations are "material" for purposes of determining good standing, and their decision will be final. If participation in the program is revoked or the franchisee ceases to be in good standing, the royalty fee reduction will automatically become null and void without any further notice.
For prospective Cicis franchisees, this means that maintaining eligibility for the Veterans Incentive Program is crucial to retaining the benefits, such as the waiver of the initial franchise fee and reduced royalty fees. Franchisees should ensure they continue to meet all qualifications for the program and remain in compliance with all material obligations under their agreements with Cicis.
The franchisee must promptly notify Cicis in writing if any of the information provided to confirm their qualifications changes or is no longer accurate. Failure to do so could result in the revocation of their participation in the program and the loss of associated benefits.