What is the average amount of the Royalty Adjustment for a Cicis restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
m of Franchise Agreement.
The Results
Table 1 - 2024 Average Monthly Metrics for Restaurants in Data Set
| 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 | ||
| ADJUSTED EBITDA (6) | $13,211 | 11.3% |
Table 2 - 2024 Average Annual Metrics for Restaurants in Data Set
| 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% |
Notes to the above Tables:
- (1) The highest monthly Fee Bas
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 53–58)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the average Royalty Adjustment for restaurants in the data set is shown in Item 19. The Royalty Adjustment is the difference between what franchisees in the data set paid for Royalty Expense and what franchisees are required to pay under the current franchise agreement, which is 5%. This difference arises because some franchisees operate under older agreements with lower royalty rates.
Based on the data from 240 franchised Cicis Buffet Restaurants analyzed from January 1, 2024, through December 31, 2024, the average annual Royalty Adjustment is $7,031, representing 0.5% of sales. On a monthly basis, the average Royalty Adjustment is $586, also representing 0.5% of sales.
For a prospective franchisee, this means that the financial performance representations include an adjustment to account for the fact that some existing franchisees may have been paying lower royalty rates than the current standard. The Royalty Adjustment increases the reported EBITDA to reflect what a new franchisee would likely pay under the current agreement. This adjustment provides a more accurate picture of potential earnings under the current franchise terms.