What is the 'Advertising National Adjustment' for Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee and the amount franchisees are required to pay under the current form Franchise Agreement ($100/month).
- "Advertising National Adjustment" is the difference between the average contributions paid by the franchisees in the Data Set to the Brand Fund and the amount franchisees are required to contribute under the current form Franchise Agreement (5% of Net Sales).
- "Adjusted EBITDA" means Restaurant EBITDA After minus the Royalty Adjustment, Technology and Support Fee Adjustment, and the Advertising National Adjustment necessary to bring those amounts to the current amounts required under the current form of Franchise Agreement.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 53–58)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the 'Advertising National Adjustment' is defined as the difference between the average contributions paid by franchisees in the data set to the Brand Fund and the amount franchisees are required to contribute under the current franchise agreement, which is 5% of Net Sales. This adjustment is used to account for differences in advertising contributions between older franchise agreements and the current agreement.
In 2024, the average monthly 'Advertising National Adjustment' was $1,648, representing 0.1% of Fee Based Net Sales. For a prospective franchisee, this means that the historical data from 2024 has been adjusted to reflect the current advertising contribution requirements. This adjustment is added to the 'Restaurant EBITDA After' to calculate the 'Adjusted EBITDA'.
It's important to note that some franchisees in the data set were subject to older franchise agreements with different payment amounts. The 'Advertising National Adjustment' is a way to standardize the financial data to reflect current obligations. This allows potential franchisees to better understand the potential financial performance of a Cicis franchise under the current agreement, as the adjustment brings all data in line with the current 5% of Net Sales contribution requirement.