How is 'Restaurant EBITDA Before' calculated for Cicis restaurants?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
"Net Company Sales" is the sum of Fee Based Net Sales plus Game Room Sales.
"COGS" means the aggregate delivered cost of food and beverage sold at the restaurant and related paper supplies.
"Payroll Costs" is the total cost of salaries, wages, payroll taxes, and general liability insurance premium paid by the franchisees of the restaurants in the Data Set.
It does not include any distributions of profits to owners or other non-employee related distributions.
"Controllable Expenses" means the aggregate expenses for utilities, repairs & maintenance, smallwares, other store supplies, cleaning supplies, linen, uniforms, game room expenses, office supplies, trash removal, security, bank/credit card fees, sales tax adjustments, online delivery fees, and Local Marketing Spend incurred by the restaurants in the Data Set.
"Advertising National" means the amount contributed to the Fund.
"Non-Controllable Expenses" means the aggregate occupancy costs, property tax, and other taxes and related expenses incurred in the operation of the restaurants.
"Restaurant EBITDA Before" means Net Company Sales minus COGS, Payroll Costs, Controllable Expenses, Advertising National, and Non-Controllable Expenses before deductions for the Royalty and the Technology and Support Fees actually paid by the restaurant.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 53–58)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, 'Restaurant EBITDA Before' is a key financial metric representing a restaurant's earnings before certain deductions. It is calculated by starting with 'Net Company Sales' and subtracting several expense categories: 'COGS' (Cost of Goods Sold), 'Payroll Costs', 'Controllable Expenses', 'Advertising National' contributions, and 'Non-Controllable Expenses'. This calculation is performed before deducting Royalty and Technology and Support Fees.
'Net Company Sales' is the sum of 'Fee Based Net Sales' and 'Game Room Sales'. 'Fee Based Net Sales' includes most sales revenues but excludes sales tax, customer refunds, vending machine sales, and video game machine revenue. 'COGS' includes the cost of food, beverage, and related paper supplies. 'Payroll Costs' covers salaries, wages, payroll taxes, and general liability insurance premiums, excluding profit distributions to owners. 'Controllable Expenses' include utilities, repairs, smallwares, cleaning supplies, and other operational costs. 'Advertising National' refers to contributions to the advertising fund. 'Non-Controllable Expenses' include occupancy costs, property taxes, and related expenses.
For a prospective Cicis franchisee, understanding this calculation is crucial as 'Restaurant EBITDA Before' provides a clear picture of the restaurant's operational profitability before franchise-specific costs like royalties and technology fees are factored in. This metric allows franchisees to assess the underlying efficiency and profitability of the restaurant model itself. By understanding the components of this calculation, franchisees can better manage their expenses and focus on areas to improve their restaurant's financial performance. It's important to note that the Item 19 data is based on historical results from a specific data set of franchised Cicis Buffet Restaurants and individual results may vary.