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Cicis Franchise ProfileFood Franchises > Pizza |
What Are the Initial Investment Requirements for a Cicis Franchise?
To open a Cicis franchise, you will need to prepare for a total initial investment that ranges from $242,086 to $1,019,140. This includes a franchise fee of $30,000. Additionally, you should have at least $30,000 in cash readily available and a net worth between $500,000 and $1,000,000. Understanding these financial commitments is crucial for assessing your readiness to invest in this franchise opportunity.
What Are the Ongoing Fees Associated with a Cicis Franchise?
Cicis franchisees are required to pay a royalty fee of 5% on gross sales, along with a marketing fee of 5%. These ongoing fees are essential for maintaining brand presence and supporting national marketing efforts. It’s important to factor these costs into your financial planning, as they will impact your overall profitability and cash flow over time.
What Is the Average Revenue Potential for a Cicis Franchise?
Cicis franchises have shown strong revenue potential, with average annual revenue per unit reported at $1,379,848. The median annual revenue is slightly lower at $1,336,843, while the lowest revenue recorded is $551,792 and the highest reaches up to $3,303,717. This variance highlights the importance of location, management, and operational efficiency in achieving financial success.
How Quickly Can You Expect to Break Even with a Cicis Franchise?
The breakeven time for a Cicis franchise is approximately 12 months, with an investment payback period of about 9 months. This relatively quick return on investment can be appealing for aspiring franchisees, but it is essential to have a solid business plan and operational strategy to ensure you reach these milestones effectively.
Cicis Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Cicis Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 286 | 266 | 269 |
| Net Change YoY | -20 | 3 | |
| Franchised Units | 278 | 259 | 255 |
| Net Change YoY | -19 | -4 | |
| Corporate Units | 8 | 7 | 14 |
| Net Change YoY | -1 | 7 |
Investment Overview
The initial investment for a Cicis franchise ranges from $242,086 to $1,019,140, with a franchise fee of $30,000. Potential franchisees should be prepared for ongoing costs, including a 5% royalty fee and a 5% marketing fee. A cash reserve of at least $30,000 and a net worth of $500,000 to $1,000,000 are required to ensure financial stability when starting the business.
Revenue Potential
Cicis franchises have demonstrated strong revenue potential, with average annual revenue per unit reaching $1,379,848. The median annual revenue is slightly lower at $1,336,843, while revenues can vary significantly, with the lowest reported at $551,792 and the highest at $3,303,717. This variability highlights the importance of location and management in driving profitability.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is notably short, averaging just 9 months, making Cicis an attractive option for those looking to recover their initial investment quickly and begin generating profit.
Franchise Growth
The Cicis franchise system has seen fluctuations in its number of franchised units, with 278 units in 2021, decreasing to 259 in 2022, and further to 255 in 2023. However, the number of corporate-owned units increased from 8 in 2021 to 14 in 2023, indicating a strategic shift in corporate growth and support for franchisees.
Financial Metrics
Analyzing the average profit and loss for Cicis reveals a gross profit margin of 72%, with operating expenses accounting for 49.4% of revenue. This results in an EBITDA of $221,063, or 16% of total revenue. These metrics provide insight into the operational efficiency and profitability potential for franchise owners.
Operational Expenses
Average annual running expenses for a Cicis franchise total approximately $835,230. Key expenses include payroll costs of $444,925, controllable expenses of $159,117, and national advertising costs of $58,240. Understanding these expenses is crucial for franchisees to manage their budgets effectively and maximize profitability.
Frequently Asked Questions
The initial investment for a Cicis franchise ranges from $242,086 to $1,019,140. This includes the franchise fee of $30,000, along with other startup costs like equipment and leasehold improvements.