What costs are included in Cicis' definition of 'Payroll Costs'?

According to Cicis's 2025 Franchise Disclosure Document, 'Payroll Costs' encompass the total expenditure on salaries, wages, payroll taxes, and general liability insurance premiums paid by franchisees within the data set used for financial performance representation. This definition is crucial for prospective franchisees as it provides clarity on what expenses are categorized under payroll when evaluating the potential profitability of a Cicis restaurant.

Notably, the definition explicitly excludes distributions of profits to owners or other non-employee related distributions. This distinction is important because it ensures that the 'Payroll Costs' metric accurately reflects the expenses directly related to compensating employees, rather than including payments to owners or other forms of profit sharing. Understanding this exclusion helps potential franchisees to better interpret the financial performance data presented in Item 19 of the FDD.

For a prospective Cicis franchisee, knowing the components of 'Payroll Costs' is essential for accurate financial planning and forecasting. By understanding what is included and excluded from this category, franchisees can more effectively manage their labor costs and assess the overall financial health of their restaurant. This information, combined with other financial metrics provided in the FDD, enables franchisees to make informed decisions and optimize their business operations.