What does 'Advertising National' refer to in the context of Cicis restaurants?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Advertising National" means the amount contributed to the Fund.
| Financial Metrics | Average Amount | Average Percentage |
|---|---|---|
| Fee Based Net Sales (2) | $1,327,963 | 94.6% |
| Game Room Sales | $76,342 | 5.4% |
| (4) | $1,404,304 | 100.0% |
| Net Company Sales | ||
| COGS | $384,960 | 27.4% |
| Payroll Costs | $444,691 | 31.7% |
| Controllable Expenses | $165,305 | 11.8% |
| (5) | $64,751 | 4.9% |
| Advertising National | ||
| Non-Controllable Expenses | $116,818 | 8.3% |
| RESTAURANT EBITDA | $227,779 | 16.2% |
| BEFORE | ||
| Royalty Expenses (5) | $59,367 | 4.5% |
| Technology and Support Fee | $439 | 0.0% |
| RESTAURANT EBITDA | $167,972 | 12.0% |
| AFTER | ||
| Royalty Adjustment (5) | $7,031 | 0.5% |
| Technology and Support Fee | ||
| Adjustment | $761 | 0.1% |
| Advertising National | $1,648 | 0.1% |
| Adjustment | ||
| ADJUSTED EBITDA(6) | $158,533 | 11.3% |
| Financial Metrics | Average Amount | Average Percentage |
|---|---|---|
| Fee Based Net Sales (1) | $110,664 | 94.6% |
| Game Room Sales | $6,362 | 5.4% |
| (3) | $117,025 | 100.0% |
| Net Company Sales | ||
| COGS | $32,080 | 27.4% |
| Payroll Costs | $37,058 | 31.7% |
| Controllable Expenses | $13,775 | 11.8% |
| (5) | $5,396 | 4.9% |
| Advertising National | ||
| Non-Controllable Expenses | $9,735 | 8.3% |
| RESTAURANT EBITDA | $18,982 | 16.2% |
| BEFORE | ||
| (5) | $4,947 | 4.5% |
| Royalty Expenses | ||
| Technology and Support Fee | $37 | 0.0% |
| RESTAURANT EBITDA | $13,998 | 12.0% |
| AFTER | ||
| Royalty Adjustment (5) | $586 | 0.5% |
| Technology and Support Fee | $63 | 0.1% |
| Adjustment | ||
| Advertising National | $137 | 0.1% |
| Adjustment |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 53–58)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, "Advertising National" refers to the amount contributed to the Brand Fund. This is a crucial expense for franchisees to consider, as it directly impacts the funds available for national advertising campaigns that promote the Cicis brand.
Item 19 includes financial performance representations based on data from franchised Cicis Buffet Restaurants between January 1, 2024, and December 31, 2024. The average annual contribution to Advertising National was $64,751, representing 4.9% of Net Company Sales. On a monthly basis, the average contribution was $5,396, also representing 4.9% of Net Company Sales. These figures provide prospective franchisees with an understanding of the typical advertising expenses within the Cicis franchise system.
Additionally, the FDD mentions an "Advertising National Adjustment," which accounts for differences between the average contributions paid by franchisees in the Data Set and the amount franchisees are required to contribute under the current Franchise Agreement (5% of Net Sales). This adjustment is used to standardize financial data for comparison purposes, particularly since some franchisees may be operating under older agreements with different contribution requirements. For the year 2024, the average Advertising National Adjustment was $1,648, or 0.1% of Net Sales, while the monthly adjustment was $137, also 0.1% of Net Sales. Understanding these adjustments is important for accurately assessing potential earnings and expenses.