Under what conditions can Cicis revoke participation in the Development Incentive Program?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
deration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
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- Approval to Participate in Development Incentive Program. In the Development Agreement, you have agreed to develop or cause your affiliates to develop, in each case pursuant to individual Franchise Agreements, at least five (5) Cicis Pizza Restaurants. In light of your acquisition of the Development Rights and your agreement to remain in good standing (as defined below), we have agreed to allow you to participate in our Development Incentive Program (the "Program") with respect to the Development Agreement and Franchise Agreements that you or your affiliates execute pursuant to the Development Agreement from and after the Effective Date of this Addendum (the "Qualifying Franchise Agreements"). We may revoke your participation in the Program if, at any time, we determine that you no longer qualify to participate.
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- Reduction of Development and Initial Franchise Fees. Section 3 of the Development Agreement is supplemented and amended by adding the following to the end of the Section:
While you are approved to participate in the Program and provided you and your affiliates remain in good standing, we agree that the Development Fee will be reduced to $10,000 times the total number of Restaurants to be developed hereunder, and the Initial Franchise Fee under each Qualifying Franchise Agreement shall be reduced to $10,000. We reserve the right to revoke the foregoing reductions at any time you are no longer approved to participate in the Program or you cease to be in good standing, in which case, you will pay us the balance of the full Development Fee and Initial Franchise Fees which, absent the foregoing reductions, are required under the Development Agreement and Qualifying Franchise Agreements, as applicable.
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 developer's participation in the Development Incentive Program if they determine that the developer no longer qualifies to participate in the program. Additionally, Cicis reserves the right to revoke waivers of the development fee and initial franchise fee if the developer 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 Development Agreement and all Franchise Agreements between Cicis and the developer or their affiliates.
Cicis retains sole discretion to determine whether particular obligations are "material" for determining good standing, and their decision is final. If participation in the program is revoked or good standing is lost, the developer will be required to pay the full Development Fee and Initial Franchise Fees as required under the Development Agreement and Qualifying Franchise Agreements.
For a veteran participating in the Veteran's Incentive Program, Cicis may revoke participation if the veteran no longer qualifies for participation or ceases to be in good standing. Good standing for veterans means compliance with all material obligations under the Franchise Agreement, and compliance by the veteran and their affiliates with all material obligations under any other agreements between Cicis and them. Cicis retains sole discretion to determine whether particular obligations are "material" for determining good standing, and their decision is final.
These conditions highlight the importance of maintaining compliance with all agreements and obligations to retain the benefits of the incentive programs. Prospective franchisees should carefully review the terms of the Development Agreement, Franchise Agreements, and any addenda related to incentive programs to fully understand the requirements for maintaining good standing and avoiding revocation of program benefits.