Can Cicis authorize other items to be excluded from Net Sales?

According to Cicis's 2025 Franchise Disclosure Document, Cicis has the authority to allow franchisees to exclude certain items from their net sales calculations. Net sales are defined as all revenues received from the Cicis restaurant, including revenue from video game machines, and encompass transactions made via cash, check, credit/debit card, gift cards, or other credit methods. Net sales also include insurance proceeds received to replace lost revenue due to business interruption.

However, the standard definition of net sales excludes sales tax, customer refunds, and receipts from vending machine product sales. The FDD explicitly states that Cicis retains the discretion to authorize additional exclusions from net sales beyond these standard deductions.

This flexibility could potentially benefit franchisees if Cicis chooses to exclude specific revenue streams or transactions, leading to a lower royalty fee, which is calculated as a percentage of net sales. However, Cicis also reserves the right to revoke or withdraw any such permission at any time, meaning that franchisees cannot rely on these additional exclusions indefinitely. Prospective franchisees should inquire about the specific circumstances under which Cicis might grant such exclusions and the factors that could lead to their revocation.