What is the relationship between the bankruptcy filings described in Cicis's Item 4 and 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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- If a Franchise Agreement is signed pursuant to an Area Development Agreement, we will apply the development fee, in increments of $15,000 ($10,000 if you participate in the Development Incentive Program), toward the payment of initial franchise fees. Your initial
franchise fee will be reduced to (i) $5,000 under the Franchise Agreements executed pursuant to the Reopen Incentive Program; (ii) $10,000 under the Franchise Agreements executed pursuant to the Development Incentive Program; and (iii) $0 under the Franchise Agreements executed pursuant to the Veteran's Incentive Program.
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- Cicis Restaurants are typically located in commercially zoned shopping areas. Due to the cost of land acquisition and new construction, the premises are normally leased. These amounts assume that you will lease the premises for the Location and do not include costs of land acquisition and construction of a building. If you purchase land and construct the Location, the initial cost will be significantly greater than these estimates. Due to the highly variable nature of these costs, we cannot provide an estimate of the cost to acquire land and construct a new building. The estimates provided are based on the cost of adapting our prototypical architectural plans for the finish-out of a Cicis Buffet Restaurant containing approximately 3,000 to 6,000 square feet and a Cicis To Go Restaurant containing approximately 1,000 to 1,500 square feet. The leasehold improvement ranges will be affected by various factors like the location of the Cicis Restaurant and local market conditions. The estimates assume that the landlord will provide connections to adequate electrical, gas, water, and sewage service.
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, there is no direct relationship discussed between the bankruptcy filings mentioned in Item 4 and the estimated initial investment costs in Item 7 for a Cicis franchise. Item 7 provides a detailed breakdown of the estimated initial investment required to open a Cicis restaurant, covering various expenditures such as the initial franchise fee, leasehold improvements, equipment, signage, insurance, licenses, inventory, promotional expenses, training costs, and additional funds needed during the start-up phase. These costs vary depending on whether the franchise is a Cicis Buffet Restaurant or a Cicis To Go Restaurant.
The initial investment for a Cicis Buffet Restaurant ranges from $694,965 to $1,038,753, while for a Cicis To Go Restaurant, the range is $242,086 to $438,232. These figures include a variety of costs, such as a $30,000 initial franchise fee for a Buffet Restaurant and a $15,000 fee for a To Go Restaurant. Leasehold improvements can range from $325,080 to $348,725 for a Buffet Restaurant and $76,600 to $183,725 for a To Go Restaurant. Equipment, furniture, and fixtures are estimated at $163,752 to $217,000 for a Buffet Restaurant and $87,586 to $114,473 for a To Go Restaurant.
Item 7 also includes notes that clarify certain aspects of the initial investment. For example, all fees payable to Cicis and its affiliates are non-refundable, and the actual amount of the development fee depends on the number of restaurants the franchisee agrees to develop under an Area Development Agreement. The document emphasizes that the estimates provided are based on leasing the premises and do not include the costs of land acquisition or new construction, which would significantly increase the initial investment. Prospective franchisees are encouraged to review these estimates with their business advisors to assess their financial readiness and consider whether they will need additional cash reserves.
While Item 7 provides a comprehensive overview of the costs associated with opening a Cicis franchise, it does not reference or account for any potential financial implications related to the bankruptcy filings that may be discussed in Item 4. A potential franchisee should carefully review Item 4 and discuss with Cicis how those filings might impact the franchise system and their investment.