How does Cicis's Item 11, regarding pre-opening obligations, relate to the estimated initial investment costs outlined in Item 7?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
CICIS BUFFET RESTAURANT**
| Type of Expenditure (Note 1) | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Franchise Fee (Note 2) | $30,000 | Lump sum | On Execution | Us |
| Leasehold Improvements (Note 3) | $325,080 - $348,725 | As arranged | As invoiced | Landlord / Third-Party Suppliers |
| Equipment and Supplies | $80,000 - | As arranged | As invoiced | Third-Party |
| for Game Room (Note 4) | $250,000 | Suppliers | ||
| Impact Fees | $0 - | As arranged | As assessed | Local Authorities |
| (Note 5) | $20,000 | |||
| Equipment, Furniture and Fixtures (Note 6) | $163,752 – $217,000 | Lump sum or as arranged | As invoiced | Our Affiliate / Third Party Suppliers |
| Signage and Graphics (Note 7) | $11,464 – $19,600 | Lump sum | As invoiced | Third-Party Suppliers |
| Insurance (Note 8) | $500 - $2,000 | As arranged | As invoiced | Third-Party Suppliers |
| Business Licenses (Note | $1,000 - | As arranged | As invoiced | Third-Party |
| 9) | $4,000 | Suppliers | ||
| Opening Inventory/ Supplies (Note 10) | $28,419 - $34,428 | Lump sum or as arranged | As invoiced | Our Affiliate / Third Party Suppliers |
| Promotional | $10,000 - | As arranged | As incurred | Third-Party |
| Expenses (Note 11) | $15,000 | Suppliers | ||
| Training Costs (Note 12) | $10,750 - $36,000 | As arranged | As needed | Third-Party Suppliers / Employees / Us |
| Deposits and other Pre Opening Costs (Note 13) | $9,000 - $17,000 | As arranged | As invoiced | Third-Party Suppliers |
| Additional Funds | $25,000 - | As arranged | As invoiced | Third-Party |
| (3 months) | $45,000 | Suppliers | ||
| Type of Expenditure (Note 1) | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
| --- | --- | --- | --- | --- |
| TOTALS | $694,965 - $1,038,753 |
YOUR ESTIMATED INITIAL INVESTMENT FOR A CICIS TO GO RESTAURANT
| Type of Expenditure (Note 1) | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Franchise Fee (Note | $15,000 | Lump sum | On | Us |
| 2) | Execution | |||
| Leasehold Improvements | $76,600 - | As arranged | As invoiced | Landlord / |
| (Note 3) | $183,725 | Suppliers | ||
| Impact Fees (Note 5) | $0 - $5,000 | As arranged | As assessed | Local Authorities |
| Equipment Furniture and Fixtures (Note 6) | $87,586 - $114,473 | Lump sum or as arranged | As invoiced | JMC / Suppliers |
| Signage and Graphics | $5,000 - | Lump sum | As invoiced | Third-Party |
| (Note 7) | $10,000 | Suppliers | ||
| Insurance (Note 8) | $375 - $2,000 | As arranged | As invoiced | Third-Party Suppliers |
| Business Licenses (Note 9) | $1,000 - $3,000 | As arranged | As invoiced | Third-Party Suppliers |
| Opening Inventory/ | $21,025 - | Lump sum | As incurred | JMC / Suppliers |
| Supplies (Note 10) | $27,034 | |||
| Promotional | $10,000 - | As arranged | As incurred | Third-Party |
| Expenses (Note 11) | $15,000 | Suppliers | ||
| Training Costs (Note 12) | $7,500 - $29,000 | As arranged | As incurred | Third-Party Suppliers / Employees /Us |
| Deposits and other Pre Opening Costs (Note 13) | $8,000 - $19,000 | As arranged | As invoiced | Third-Party Suppliers |
| Additional Funds | $10,000 - | As arranged | As invoiced | Third-Party |
| (3 months) (Note 14) | $15,000 | Suppliers | ||
| TOTALS | $242,086 - $438,232 |
Notes to the 2 preceding charts:
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- All fees payable to us and our affiliates are not refundable. Whether any of the other payments are refundable will depend on the arrangement between you and the supplier.
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What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Item 11 outlines Cicis's pre-opening obligations to franchisees, while Item 7 details the estimated initial investment required to open a Cicis restaurant. Item 7 includes several cost categories that directly relate to Cicis's pre-opening assistance described in Item 11. For example, Item 7 includes training costs, which range from $7,500 to $29,000 for a Cicis Buffet Restaurant and $10,750 - $36,000 for an Area Development Agreement. This aligns with Cicis's obligation in Item 11 to provide an initial training program for the Managing Owner, Operator, General Manager, and Assistant Managers.
Another connection between Item 11 and Item 7 is the grand opening promotion. Item 7 lists "Promotional Expenses" with an estimated cost of $10,000 to $15,000. This corresponds to Cicis's requirement, as stated in Item 11, that franchisees must carry out a grand opening promotion for their Cicis Restaurant according to Cicis's written specifications. Item 7 also lists 'Deposits and other Pre Opening Costs' which range from $8,000 - $19,000 for a Cicis Buffet Restaurant and $9,000 - $17,000 for an Area Development Agreement. These costs may be associated with assistance Cicis provides before opening.
Item 7 provides a detailed breakdown of the various expenditures a franchisee can expect to incur before opening a Cicis restaurant, while Item 11 describes the support and services Cicis offers during this pre-opening phase. The costs listed in Item 7, such as training, promotional expenses, and pre-opening costs, are directly related to the obligations Cicis undertakes to assist franchisees in preparing to launch their restaurants. Therefore, Item 7 quantifies the financial investment required for the pre-opening assistance and obligations outlined in Item 11.