How much did Cicis distribute to related parties in 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
uring the years ended December 31, 2024 and 2023, marketing fund contributions from corporate owned restaurants totaled $271,841 and $267,883, respectively, an
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the company made distributions to related parties in the amount of $8,300,000 during the year ended December 31, 2023. In the previous year, 2022, these distributions totaled $7,277,500. These distributions are part of the cash flows from financing activities.
For a prospective Cicis franchisee, this indicates the financial transactions between Cicis and its related entities. It's important to understand these related-party transactions, as they can influence the company's financial performance and stability. Significant distributions to related parties could impact the resources available for supporting franchisees or investing in the brand.
Franchisees should consider the implications of these transactions and how they might affect the overall health and direction of the Cicis franchise system. Understanding the nature and purpose of these distributions is crucial for assessing the financial risks and opportunities associated with investing in a Cicis franchise. It is typical for franchise companies to have related party transactions, but the amounts and nature of those transactions should be carefully scrutinized.