What is Cicis' definition of 'Restaurant EBITDA Before'?

According to Cicis's 2025 Franchise Disclosure Document, 'Restaurant EBITDA Before' is defined as Net Company Sales minus COGS (Cost of Goods Sold), Payroll Costs, Controllable Expenses, Advertising National, and Non-Controllable Expenses. This calculation is performed before deducting Royalty and Technology and Support Fees. In simpler terms, it represents the earnings of a Cicis restaurant before accounting for royalty payments, technology fees, and support fees paid to the franchisor. This metric offers a view of the restaurant's operational profitability, excluding certain financial obligations to Cicis.

For a prospective Cicis franchisee, understanding Restaurant EBITDA Before is crucial because it provides insight into the underlying profitability of the restaurant's operations. By subtracting the direct costs associated with running the business (such as food, labor, and advertising) from the total revenue, a franchisee can assess the efficiency and effectiveness of the restaurant's business model. This figure helps in evaluating the potential for generating profit before considering franchise-related fees.

It's important to note that Restaurant EBITDA Before does not represent the franchisee's actual take-home profit. The franchisee must still account for royalty fees, technology and support fees, and other potential expenses not included in the calculation. However, this metric serves as a valuable benchmark for comparing the performance of different Cicis locations and assessing the overall financial health of the restaurant before franchise-specific costs are factored in. Franchisees can use this information to make informed decisions about cost management, revenue generation, and overall business strategy.

Furthermore, the FDD provides average annual metrics for restaurants in the data set. The average Restaurant EBITDA Before is $227,779, representing 16.2% of Net Company Sales. This data point gives potential franchisees a benchmark to compare their own restaurant's performance against, once operational. However, individual results may vary, and there is no guarantee that a new franchisee will achieve the same level of profitability.