Under what conditions does Cicis have the right to refuse a franchisee's request or withhold approval?

According to Cicis's 2025 Franchise Disclosure Document, Cicis retains significant discretionary power over franchisee actions and requests. Except where the Development Agreement expressly requires Cicis to reasonably approve or not unreasonably withhold approval, Cicis has the absolute right to refuse any request from a franchisee or to withhold approval of any proposed, initiated, or completed actions that require their approval. This broad discretion allows Cicis to control various aspects of the franchise operation, ensuring uniformity and protecting the brand's integrity.

This provision in the Development Agreement means that prospective Cicis franchisees should be aware that Cicis can make decisions impacting their business without necessarily needing to provide a specific justification, as long as it is not explicitly required by the agreement. Franchisees must operate within the bounds of the agreement and seek approval for actions that require it, understanding that approval is not guaranteed. This could affect decisions related to site selection, marketing strategies, or operational changes.

It is important for potential franchisees to carefully review the Development Agreement to identify areas where Cicis's approval is required and to understand the extent of Cicis's discretion. Franchisees should also seek legal counsel to fully understand the implications of this clause and how it may affect their ability to operate their Cicis franchise. Understanding the conditions under which Cicis can refuse a request or withhold approval is crucial for making informed decisions and managing expectations as a franchisee.