How is the revenue generated from the operation of the game room in a Cicis Restaurant treated for the purpose of calculating the Royalty Fee?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Regardless of whether you purchase or lease the equipment and supplies for the game room, all the revenue generated from the operation of the game room (without any deduction for amounts that you may to third-parties as license fee, lease rental, or otherwise) will be added to the Net Sales of your Cicis Restaurant for the purpose of calculating the Royalty Fee.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT FOR A CICIS BUFFET RESTAURANT (FDD pages 21–25)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, all revenue generated from the operation of the game room at a Cicis restaurant is included in the calculation of the Royalty Fee. This means that the total revenue from the game room, without any deductions for expenses like license fees or lease rentals paid to third parties, is added to the Net Sales of the Cicis restaurant.
For a prospective Cicis franchisee, this is an important consideration when evaluating the potential profitability of including a game room in their restaurant. While the game room can be an additional revenue stream, the royalty fee will be calculated on the gross revenue generated by the game room, not the net profit.
Cicis franchisees should carefully consider the costs associated with operating the game room, such as equipment, software licenses, and maintenance, in relation to the potential revenue and the impact on the royalty fee. The FDD strongly recommends purchasing the equipment and supplies for the game room rather than leasing them, but regardless of the method of acquisition, the gross revenue is what counts for royalty calculations.