What were the total expenses for Cicis in 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
the use of the trademarks and other intellectual property.
The Company entered into an agreement where an affiliate will provide management services for a fee, plus out of pocket expenses as incurred. Effective January 1, 2023, the fee is calculated at 1% of marketing fund contributions and 50% of other net revenue. The Company expensed $7,112,185 and $1,223,149 related to this agreement for the years ended December 31, 2023 and 2022, respectively. The management services fees are included in other general and administrative expenses on the combined statements of income. At December 31, 2023 and 2022, the Company has a payable to an affiliate for these services in the amount of $583,611 and $154,418, respectively, recorded in related party payable on the combined balance sheets.
Effective January 1, 2024, the management services agreement was amended to calculate management fees at 60% other net revenue.
Note 3. 401(k) Savings Plan
The Company has a qualified cash or deferred compensation plan under section 401(k) of the Internal Revenue Code.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, several specific expenses are detailed for the year 2023. The company expensed $7,112,185 related to a management services agreement with an affiliate. Additionally, amortization expenses associated with goodwill totaled $2,380, and amortization expenses for franchise agreements totaled $10,769. Cicis also incurred marketing fund expenditures of $24,935,940 in 2023. These figures offer insight into specific areas of spending for Cicis during that year.
Furthermore, the document indicates that Cicis received $26,342,984 in marketing fund contributions in 2023, which includes beverage rebates. The company also received rebates amounting to $8,874,070 from vendors during the same period. These contributions and rebates are classified within revenue and offset by marketing general and administrative costs. These figures are important for prospective franchisees to understand how the marketing fund operates and how it is funded.
It is important to note that while these figures provide a glimpse into Cicis's expenses, they do not represent a comprehensive overview of all expenses incurred by the company in 2023. The FDD excerpts focus primarily on specific categories such as management services, amortization, and marketing fund expenditures. A prospective franchisee would need to consult the complete financial statements for a full understanding of Cicis's financial performance and expense structure.