FDD Talk Daily: Average, High, and Low Sales of Company-Owned CiCi’s Pizza Restaurants

Highlights of CiCi’s Pizza’s Item 19 Financial Performance Representations (2012 FDD) – Part 1

• The franchise is for restaurants specializing in pizza and other Italian foods and operating as “CiCi’s Pizza”, or for units offering carry-out pizzas operating as “CiCi’s To Go”.

• CiCi’s Pizza Restaurants – The total investment necessary to begin operation of a CiCi’s Pizza Restaurant ranges from $448,703 to $729,580. These totals include approximately $168,660 to $207,287 that must/may be paid to the franchisor or an affiliate.

• Developers will also pay a development fee equal to the total of 100% of the initial franchisee fee for your first Restaurant and 40% of the initial franchise fee for each additional Restaurant. The portion of your development fee that is allocable to each Restaurant will be credited against the initial franchise fee due for that Restaurant.

• Cici’s To Go Units – The total investment necessary to begin operation of a CiCi’s To Go Unit ranges from $203,818 to $306,014. These totals include approximately $84,484 to $95,430 that must/may be paid to the franchisor or an affiliate.

• Developers will also pay a development fee equal to the total of 100% of the initial franchisee fee for your first CiCi’s To Go Unit and 40% of the initial franchise fee for each additional CiCi’s To Go Unit. The portion of your development fee that is allocable to each CiCi’s To Go Unit will be credited against the initial franchise fee due for that CiCi’s To Go Unit.

Part I – Analysis of Average Sales and Certain Average Costs and Expenses for Company-Owned CiCi’s Pizza Restaurants

• Part I of this financial performance representation analyzes average sales and certain average costs and expenses for company-owned CiCi’s Pizza Restaurants. To Go Units are not included.

• The analysis was based on the operating results of the 6 company-owned CiCi’s Pizza Restaurants in the Dallas/Ft. Worth, Texas (“DFW”) market that were open and operating for at least 18 months before December 25, 2011 and in operation during the company’s entire fiscal year ended December 25, 2011 (“Sample Restaurants”).

• These are all of the company-owned Restaurants in the DFW market. These Restaurants offer substantially the same products and services that your Restaurant will offer.

• Each of the Sample Restaurants used a uniform accounting system, and the data was prepared on a basis consistent with generally accepted accounting principles during the applicable period.

• The Sample Restaurants in the High category averaged 19.6 years in operation.

• The information has not been audited.

Table 1 – Average Sales for Sample Restaurants in Fiscal Year 2011 (Unaudited)

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