What expenses are included in 'Non-Controllable Expenses' for Cicis restaurants?

According to Cicis's 2025 Franchise Disclosure Document, 'Non-Controllable Expenses' consist of occupancy costs, property tax, other taxes, and related expenses incurred while operating a Cicis restaurant. These expenses are considered 'non-controllable' because they are largely fixed or determined by external factors such as property values and tax rates, rather than being directly managed by the franchisee.

Understanding these non-controllable expenses is crucial for prospective franchisees as they represent a significant portion of the overall costs. The Item 19 table shows that, on average, these expenses amounted to $9,735 monthly, or $116,818 annually, representing 8.3% of Net Company Sales. This percentage can help potential franchisees assess the financial viability of different locations, considering variations in property costs and local tax rates.

It's important to note that while these expenses are termed 'non-controllable,' franchisees can still manage them to some extent by carefully selecting locations with favorable lease terms and tax environments. Additionally, understanding the components of these expenses allows franchisees to better budget and forecast their financial performance. Prospective franchisees should carefully review potential locations and consult with financial advisors to fully understand the impact of these non-controllable expenses on their profitability.