How does Cicis define 'Game Room Sales'?

According to Cicis's 2025 Franchise Disclosure Document, 'Game Room Sales' is defined as the aggregate revenue derived by the restaurants in the Data Set from the operation of the game room and video game machines. This definition is used in Item 19, which provides financial performance representations based on data from a set of franchised Cicis Buffet Restaurants. The data set used for these calculations covers the period from January 1, 2024, through December 31, 2024.

For a prospective franchisee, understanding this definition is crucial because Game Room Sales are a component of 'Net Company Sales,' which is calculated by adding 'Fee Based Net Sales' and 'Game Room Sales'. While 'Fee Based Net Sales' excludes revenue from video game machines, 'Net Company Sales' includes it. This distinction is important because certain expenses and percentages are calculated based on 'Net Company Sales,' providing a comprehensive view of the restaurant's overall financial performance.

Notably, Cicis does not currently require franchisees to include revenue from video game machines when calculating royalty, fund contributions, and other fee-based payments. However, Cicis retains the right to include this revenue in the future. This means that while franchisees currently benefit from not paying royalties on game room revenue, this could change, affecting their overall profitability. Franchisees should be aware of this potential change and factor it into their financial projections.

According to the 2025 FDD, the average annual Game Room Sales for Cicis restaurants in the data set was $76,342, representing 5.4% of Net Company Sales. On a monthly basis, the average Game Room Sales was $6,362, also representing 5.4% of Net Company Sales. These figures provide a benchmark for prospective franchisees to evaluate the potential revenue from game rooms in their own locations. Franchisees should consider the investment required for game room equipment and maintenance to determine if the potential revenue justifies the costs.