How did Cicis calculate the average financial metrics presented in the Item 19 tables?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
In the Tables below, we show, for the Data Set, certain average financial metrics on a monthly basis (Table 1) and for the full Measurement Period (Table 2). To calculate the averages, we added the particular data point for each Cicis Buffet Restaurant in the Data Set, then divided that number by 240. The "median" is the middle date point in the Data Set for the particular item. For 37 Cicis Buffet Restaurants in the Data Set, where data was missing, we annualized the franchisee's information by multiplying the average monthly value of the available data by 12. Otherwise, we have calculated the results shown in the Tables below based entirely on the information provided to us by the applicable franchisees. We have not independently verified the information, but we have no reason to believe what the franchisees reported to us is not correct.
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 financial metrics presented in Item 19's tables were calculated using data from a set of franchised Cicis Buffet Restaurants. This data set includes results from January 1, 2024, through December 31, 2024, which aligns with Cicis's 2024 fiscal year. The data set excludes Cicis To-Go Restaurants due to operational differences related to size and location. Initially, there were 245 franchised Cicis Buffet Restaurants, but 3 were excluded due to missing financial information, and 2 were excluded because they are owned or controlled by Cicis's President, Jeff Hetsel, leaving a data set of 240 restaurants.
To determine the averages, Cicis added the specific data points for each Cicis Buffet Restaurant in the data set and then divided the total by 240. For 37 restaurants where data was missing, Cicis annualized the franchisee's information by multiplying the average monthly value of the available data by 12. The median is identified as the middle data point in the data set for each particular item. Cicis states that the results presented in the tables are based entirely on information provided by the franchisees and have not been independently verified. However, Cicis indicates they have no reason to believe the reported information is incorrect.
It's important to note that some franchisees in the data set operate under older franchise agreements with different payment terms. To account for these discrepancies, Cicis included adjustments to align the royalty and technology and support fees with the current franchise agreement. These adjustments are detailed in the tables to reflect what franchisees would pay under the current agreement. Prospective franchisees should be aware that these financial performance representations are based on historical data, and individual results may vary. Cicis explicitly states that there is no assurance that a new franchisee will achieve the same level of financial performance.