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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,
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.
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.
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
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.
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]