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Cici's Pizza Buffet Fact Sheet

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Page 1: Cici's Pizza Buffet Fact Sheet
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FRANCHISE FACT SHEET Key Personnel Mike Shumsky, Chief Executive Officer Forbes Anderson, Chief Financial Officer, Chief Strategy Officer Bill Spae, Chief Operating Officer Nancy Hampton, Chief Marketing Officer Thomas McCord, Vice President of Franchise Development Steve Hawter, Vice President of Franchise Services Geoff Goodman, Vice President of National Brand Excellence Mark Kiefer, Vice President of Construction Headquarters 1080 West Bethel Road Coppell, Texas 75019 972-745-4200 Website www.cicispizza.com About Us CiCi’s  Pizza  is  the  nation’s  largest  pizza  buffet  concept  with  over  500  restaurants  located  in  34  states.    CiCi’s  is  a  proven  concept  with  27  years  of  brand  heritage  and  no significant competitors in the pizza buffet segment. Our family-friendly restaurants feature a delicious custom pizza buffet that includes pastas, salads, soup and  desserts  for  one  great  price.    What  is  a  custom  pizza  buffet?    If  a  guest  doesn’t  see their favorite  pizza,  CiCi’s  will  make  a  custom  pizza  at  no  additional  charge.     Accolades CiCi's Pizza is America's favorite pizza chain, according to a national study of more than 7,600 consumers conducted by Market Force, a customer intelligence solutions agency.    Nation’s  Restaurant  News  ranked  CiCi’s  No.  1  in  sales  and  unit  growth  among pizza chains  for  the  past  four  years.  CiCi’s  was  recognized  by  Entrepreneur,  

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which  named  CiCi’s  first  in  its  category  on  the  Franchise  500  list  and  by  G.I.  Jobs  as  a  2012 Military Friendly Franchise®. Guest Promise We Promise:

To  do  “Whatever  it  Takes”  to  exceed  your expectations To  say,  “Hi,  welcome  to  CiCi’s” To guarantee you a full-hot-fresh buffet To use our names and offer to make your favorite pizza To serve you in a fun, sparkling clean restaurant And  to  say  “Goodbye,  come  back  and  see  us”

Reasons To Invest CiCi’s  Pizza  offers  a  unique  brand  position  and  great  business  opportunity  for  the  right  kind  of  owner/operator.    From  an  investors  perspective  CiCi’s  offers  four  distinct revenue streams; the custom buffet, catering, to-go orders and the game room. With average new unit volumes between $925,000 and $975,000 (based on new restaurants opened in 2011 and 2012) and a 2-to-1 sales-to-investment ratio, CiCi’s  Pizza  is  a  predictable,  sustainable  investment  opportunity.    Franchisees  benefit from:

A proven concept with 27 years of brand heritage and over 500 existing restaurant locations in 34 states.

No other significant competitors in the pizza buffet segment. Multiple protypes to allow for penetration in both traditional and non-

traditional locations. Growth Strategy As  one  of  today’s  fastest  growing  pizza  chains,  CiCi’s  Pizza  is  well  positioned  to  rapidly expand and is now seeking high-energy, passionate single and multi-unit operators to open new restaurants across the U.S. Operators must see the importance of local community involvement and local store marketing as key success factors in operating a  successful  CiCi’s.    As  part  of  its’  “Build  the  Brand”  growth strategy initiative to recruit the best franchisees and secure the best sites, CiCi’s  Pizza plans to double the number of restaurants through multi-unit development in the next 10 years. Multiple prototypes will allow for penetration in both traditional and non-traditional locations.

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Franchisee Profile At  CiCi’s   Pizza,   culture   is  key. Franchisees should possess a passion for the brand and serving guests and families in a fast-paced environment. The ideal candidate should have an entrepreneurial spirit and possess multi-unit or multi-brand experience. A strong financial background is necessary.

Candidates are required to demonstrate a minimum of $250,000 in liquid capital, a net worth of $750,000 per unit, and a credit score of 720 or better.

The average new restaurant investment is between $446,000 and $715,000 (not inclusive of Tenant Allowance and based on geography), including a franchise fee of $30,000. The franchise fee for each restaurant thereafter is $25,000. Franchisees are required to fund 30 percent of the new restaurant investment in cash.

At  CiCi’s  Pizza,  community  involvement is critical. Restaurants gain loyal customers by sponsoring local events and donating to charitable causes. Franchisees are encouraged to volunteer and work with local schools, churches and sports leagues in their communities. Development Incentives To  address  the  current  economic  and  lending  climate,  CiCi’s  has  developed  several  financing and incentive programs to assist prospective franchisees with funding options to develop and grow. Franchise Fee & Royalty Incentives CiCi’s  has  created  several programs for new & existing franchisees that are focused on accelerating new openings within the current year or increasing multi-unit operators’  annual  development  schedules.  These  benefits  include:

Reduced franchise and royalty fees Potential to receive a franchise fee refund for those that meet the specific

program guidelines Franchise Investment Program Through   its   Franchisee   Investment   Program,   CiCi’s   has   allocated   $5   million   to  provide select qualified multi-unit franchisees with the necessary funds to open a minimum of five restaurants.

CiCi’s  will   invest   $100,000   in   a   restaurant towards development and in doing so the company will become a non-voting minority shareholder.

After certain financial milestones are met and the initial $100,000 is paid back,  CiCi’s  will  roll  the $100,000 over into the development of a second restaurant.

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CiCi’s  Patriot  Program In an effort to deepen its commitment to U.S. Veterans, specificlally those of the Iraq and Afghanistan conflicts, the company has created  the  CiCi’s  Patriot  Program.  The  program offers great value to all honorably discharged Gulf War veterans by waiving the franchise fee for the first restaurant and offering 50 percent off royalties for the first full year in operation, a savings of approximately $58,000. Veterans enrolled in the Patriot Program are required to hire an honorably discharged veteran manager within the restaurant in an effort to create more jobs for   the   veteran   community.   Additionally,   CiCi’s   Pizza   will   support   the   veteran franchisee to obtain his or her Certified Franchise Executive designation from the International Franchise Association. Financing To assist franchise prospects in securing financing CiCi's is listed with the SBA and has a contractual relationship with BoeFly (which has 2400 lender contacts). In addition CiCi's has a dedicated commercial lending consultant that can assist with all phases of the lending process. Marketing CiCi’s  Pizza  provides  franchisees  with  access  to  a  powerful  marketing  program  that includes national TV and digital advertising, social media, public relations, as well as sales and promotional tools. Furthermore, each franchisee is assigned to a Corporate Field Marketing Manager to help develop localized market plans designed to build brand awareness and drive traffic to the restaurant. Real Estate CiCi’s   Pizza   formed   a   partnership   with   Birchwood   Resultants,   a   strategic   site  modeling   company,   to   help   fuel   the   chain’s   development   goals.  With   a   robust   site  model, complete with competitive analysis and recessionary metrics, franchisees are able to maximize their growth potential. Site Criteria:

65,000 population within a 3 mile radius 32,000 employees within a 3 mile radius 2.5+ people per household $40-$80,000 median household income End-Cap preferred 3,600-4,000 square feet 40  direct  parking  spaces  with  2  dedicated  for  “To  Go” High traffic, high visibility, easy ingress and egress, strong retail and

restaurant presence

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CiCi’s Pizza has approved and trained local brokers in your area to help you find the perfect   location   to   analyze   all   aspects   of   the   site   and   the   market.     Finally,   CiCi’s  offers approved attorneys to help you in compliance with the Franchise Agreement. Training and Ongoing Support Franchisees  receive  comprehensive  training  in  all  aspects  of  operating  a  CiCi’s  Pizza.  This includes a required 8-12 weeks, based on relative experience, on-site training at   a   CiCi’s  Dallas   training   restaurant.   The   company   also   provides a wide range of ongoing training opportunities for franchisees, as well as employees of both company-owned and franchised operations. Additionally,  each  CiCi’s  Pizza   franchisee   is  assigned  a  Corporate  Brand  Excellence  Manager who provides operational and business consultation to assist the franchisee in all aspects of operating his or her restaurant. Distribution JMC Restaurant Distribution, Inc. was founded in 1990 and exclusively provides the purchasing  and  distribution  services  for  all  CiCi’s  Pizza restaurants. Today, JMC is one of the most sophisticated distribution companies in the United States, providing franchisees with the best market value on goods and equipment. On average, franchisees save $200 per week when purchasing through JMC versus a cash and carry center.  CiCi’s  Pizza  does  not  require  franchisees  to  use  JMC’s  services,  however 100 percent of the system has chosen JMC because of its commitment to great   service   and   pricing,   which   has   fueled   franchisees’   trust   in   using   it   as   an  exclusive supplier. Additionally,   CiCi’s   Pizza   recently   formed   a   partnership   with   J.B.   Hunt   Dedicated  Contract Services® (DCS), the nation's largest publicly traded truckload carrier, to bring greater cost savings and efficiency to franchisees with every JMC shipment. With DCS,   CiCi’s   Pizza   can   develop   new   units   anywhere   in   the   country   more  efficiently and provide the same level of high-quality, consistent service necessary to operate a successful restaurant. Royalty Rate and National Ad Fund Currently the Base Royalty Rate is as follows:

4% of net sales for the first $28,850 of weekly Net Sales 5% of the incremental weekly Net Sales from $28,851 to $33,650 5.5% of the incremental weekly Net Sales from $33,651 to $38,450 6% of the incremental weekly Net Sales in excess of $38,450

Currently the National Ad Fund is as follows:

Franchisees contribute 3% of net sales or $2,300 (whichever is greater) to a general advertising fund.

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Steps to Ownership After you have submitted your information at http://franchise.cicispizza.com, you will  have  an  opportunity  to  view  the  first  section  of  our  CiCi’s  Discovery  Portal,  which  provides  more  information  about  CiCi’s  development  process  and  ongoing  support. As you move forward, the next steps include:

Completing a Franchise Application Speaking with existing franchise owners Receiving and reviewing our Franchise Disclosure Document Completing a Personality Profile Assessment Visiting  the  CiCi’s  Support  Center  in  Dallas for work evaluation and to

meet the CiCi’s  team This process will take approximately 30 to 60 days from your first inquiry until you come out to our headquarters to finalize the approval process. Our Franchise Development team will be guiding you through this entire discovery process to answer any questions along the way. For More Information Thomas McCord, Vice President of Franchise Development (972) 745-9318 [email protected] Carrie Evans, Sr. Manager of Franchise Development (972) 745-9313 [email protected]