What does 'Restaurant EBITDA After' mean for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
"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.
"Royalty Expenses" means the aggregate amount of royalty paid by the franchisee.
"Technology and Support Fee" means the aggregate amount of technology fees actually paid to us by the franchisee.
"Restaurant EBITDA After" means Restaurant EBITDA Before after 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 After' is defined as 'Restaurant EBITDA Before' after deductions for the Royalty and the Technology and Support Fees actually paid by the restaurant. In simpler terms, it represents the earnings of a Cicis restaurant before interest, taxes, depreciation, and amortization, but after subtracting the royalty fees and technology and support fees that the franchisee pays to Cicis.
For a prospective Cicis franchisee, understanding Restaurant EBITDA After is crucial because it provides a clearer picture of the restaurant's profitability after accounting for the ongoing fees paid to the franchisor. This metric helps in assessing the actual financial performance of the restaurant unit itself. By deducting royalty and technology fees, it offers a more realistic view of what the franchisee can expect to earn from the business before considering other factors like debt service, income taxes, and non-cash expenses.
The 2025 FDD provides average annual metrics for restaurants in the data set. The average Restaurant EBITDA After is $167,972, which is 12.0% of Net Company Sales. This means that, on average, a Cicis restaurant in the data set generated $167,972 in earnings after deducting royalty and technology fees, representing 12.0% of the total Net Company Sales. It's important to note that these are averages, and an individual franchisee's results may differ. Cicis explicitly states that there is no assurance that a franchisee will earn as much.
Prospective franchisees should carefully review these figures and consider their own circumstances, including location, market conditions, and management capabilities, to estimate their potential Restaurant EBITDA After. It is also important to understand how these figures were calculated, including the definitions of 'Net Company Sales,' 'Royalty Expenses,' and 'Technology and Support Fee,' all of which are detailed in the FDD. Franchisees should also note that some franchisees in the data set are subject to older franchise agreements that provide for lower payment amounts than those provided in the current form of Franchise Agreement.