What was the total amount of distributions for Cicis franchisees in 2023?

According to Cicis's 2025 Franchise Disclosure Document, during the year ending December 31, 2023, the company made distributions to related parties totaling $8,300,000. This figure reflects the financial transactions between Cicis and its related entities, not specifically distributions to franchisees.

It is important to note that these distributions are made to related parties, which may include entities or individuals with a close relationship to Cicis, but are not direct payments to franchisees. These related-party transactions can include a variety of financial activities, such as management fees, shared costs, or other inter-company transactions. The FDD also mentions that Cicis provides various services to related-party affiliates, covering areas like employee services, accounting, legal, IT, and benefits plans. The costs for these services are allocated based on revenue, headcount, or direct costs.

Prospective franchisees should be aware of these related-party transactions, as they can impact the overall financial health and transparency of Cicis. Understanding the nature and extent of these transactions is crucial for assessing the financial stability and potential profitability of a Cicis franchise. Franchisees should seek clarification from Cicis regarding the specifics of these related-party distributions and their potential impact on the franchise system.

While the FDD provides information on distributions to related parties, it does not specify if any portion of these distributions indirectly benefits franchisees or supports the franchise system. Therefore, it is essential for potential franchisees to conduct thorough due diligence and seek professional financial advice to fully understand the implications of these related-party transactions.