Are receipts from vending machine sales included in Cicis' definition of 'Net Sales'?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
by and payable to us.
- (2) "Net Sales" means all sales, revenues, charges and receipts received by you from your Cicis Restaurant or attributed to your Cicis Restaurant, including all revenue that is generated from the operation of any video game machines (including bulk machines) located at your Cicis Restaurant, whether from cash, check, credit or debit card, gift cards, barter exchange, trade credit or other credit transactions, but excludes (i) Sales Tax (as defined below), (ii) any refunds made for your customers, and (iii) receipts from the sale of products from vending machines located at your Cicis Restaurant. Net Sales also includes all insurance proceeds you receive to replace revenue that you lose from the interruption of your Cicis Restaurant due to a casualty or other event covered by business interruption or similar insurance coverage.
Source: Item 6 — OTHER FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, 'Net Sales' are defined as all sales, revenues, charges, and receipts received by the franchisee from their Cicis restaurant or attributed to it. This includes revenue generated from video game machines (including bulk machines) located at the restaurant, regardless of the form of payment (cash, check, credit/debit card, gift cards, etc.).
However, the definition of 'Net Sales' for Cicis specifically excludes certain items. These exclusions are (i) Sales Tax, (ii) any refunds made to customers, and (iii) receipts from the sale of products from vending machines located at the Cicis Restaurant. This means that while revenue from video games is included, revenue from vending machines is not.
Additionally, Cicis may authorize other items to be excluded from Net Sales at their discretion and may revoke such permission at any time. Net Sales also include any insurance proceeds received to replace lost revenue due to business interruption covered by insurance.