How does Cicis define 'Non-Controllable Expenses'?

According to Cicis' 2025 Franchise Disclosure Document, 'Non-Controllable Expenses' are defined as the aggregate occupancy costs, property tax, and other taxes and related expenses incurred in the operation of the restaurants. These expenses are considered 'non-controllable' because they are largely fixed and not easily influenced by the franchisee's operational decisions. Understanding these costs is crucial for prospective franchisees as they represent a significant portion of the overall expenses.

Specifically, occupancy costs typically include rent or mortgage payments for the restaurant location. Property taxes are levied by local governments and can vary significantly depending on the location of the franchise. Other taxes and related expenses may include various local, state, and federal taxes applicable to the business.

These 'Non-Controllable Expenses' are factored into the calculation of Restaurant EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), both before and after deductions for royalty and technology support fees. The FDD provides average figures for these expenses, allowing potential franchisees to benchmark their own projected costs and assess the financial viability of a Cicis franchise.