Investment Fees

What is the profile of a CiCi's Franchisee?
A CiCi's owner/operator serves as the General Manager of their restaurant and devotes their full-time and attention to their CiCi's business. You must be a high-energy person who is motivated to serve others, communicates effectively, and has a successful track record in business and management at the level required to operate a high volume CiCi's. Physically, you must be able to set the pace in a very fast moving environment and have the stamina to do so for very long periods of time. We are seeking proven leaders, whose characteristics and traits adapt well to a CiCi's environment.

How much does it cost to open a CiCi's franchise?
The average investment for opening a CiCi's is estimated to range between $417,700 - $653,200. We generally require 20% equity. You will also be required to provide the balance through financing or otherwise. CiCi's does not provide financing. However, CiCi's does work with several lenders who provide loans for qualified candidates. If you fit the profile described above, and have an excellent credit history but don't have the cash required, you still may be able to qualify with another equity partner. We may introduce you to people we know who may be potential partners, but you must negotiate the terms of any partnership arrangement. Please call for more details. With economical start-up costs, average unit sales at $1,004,299 and average annual pre-tax earnings at $190,984**, it's no wonder we've got so many franchise applicants.

Where can CiCi's franchise opportunities be explored?
Alabama, Arizona, Arkansas, Southern California, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, West Virginia, and Wisconsin.

What types of recurring fees are payable to CiCi's during the term of the franchise?
CiCi's receives a 4% royalty on your unit sales for pizza, beverages and other products or services authorized for sale. Sales tax is not included in determining royalty sales. Franchises can expect to contribute the greater of $2300 or 3% of sales per month to a general advertising fund.

What kind of profits can I expect?
CiCi's Pizza is like any other independent business in that no one can guarantee profitability. The location of your restaurant, its size, your management abilities, rapport with customers, your commitment, and many other variables make it impossible to predict future results. For these reasons, CiCi's does not project sales or profits of new or existing franchise restaurants. CiCi's has been in business for over twenty years and with over 600 restaurants (many of which are owned by multi-unit operators). When we provide you with a Franchise Disclosure Document, you will be able to review historical financial information for our corporately operated restaurants. You may also contact our existing franchisees who will generally be willing to help as you construct your financial projections.

Corporate Office Support

Marketing
CiCi's Corporate Marketing Team develops and administers advertising and sales promotion programs designed to promote and enhance the collective success of all restaurants in the CiCi system. In our current program, we work with the franchise system to build restaurant sales through strategically sound, detailed Local Market (DMA) Media Plans and the creation of impactful advertising vehicles (Television & Radio Commercials, four-color Print) that effectively build awareness and trial through communication of the CiCi's brand message. Additionally, CiCi's Marketing creates and distributes cost-effective Local Store Marketing programs that can be customized by restaurant location. All stores contribute monthly to the advertising fund.

Real Estate
A CiCi's Development Representative will contact you immediately upon approval and start the process. After the territory is decided upon, he/she will work hard to identify the best opportunities in the areas that you have decided to develop and present them to you for your approval. Once you have chosen a site to develop, CiCi's will submit your LOI and start the lease process. At this point, a list of approved attorneys will be available to choose from to start lease negotiations. Any attorney from the approved list can also review the lease for corporate compliance required by the Franchise Agreement.

Distribution
JMC Restaurant Distribution, L.P. is an approved supplier for virtually all of the food, equipment and supplies used in the restaurant. Serving the entire restaurant system from three strategically placed distribution centers located in Coppell (Dallas), Texas, Atlanta, Georgia, and Richmond, Indiana, JMC is focused solely on the needs of CiCi's Pizza. Whether it be supplying the equipment package for a new restaurant, or delivering high quality, CiCi's specified products every week, JMC is dedicated to providing THE BEST quality, service and price to each restaurant. As the CiCi's systems continues to grow, JMC uses these economies of scale to obtain lower bulk pricing and pass these savings along to the restaurants. JMC's single-minded focus on serving CiCi's allows the managers and Franchisees to concentrate on serving their guests without the worries that are often associated with the supply chain.

Development Process/Training

• Multi-unit Development Process
  • Complete Confidential Personal Profile to include resume and financials
  • Interview with VP of Franchise Sales at CiCi's corporate office
  • Developer / Internal Due Diligence
  • Discovery Day / Meeting with CiCi's Senior Management Team
  • Two Day Work Evaluation for Operator
  • Development Territory Assigned
  • Development Agreement Distributed
  • Development Agreement Signed/Fees Collected
  • Developer Released to Real Estate for Site Identification
  • Begin Training* - 8-12 weeks training process
• Single-Unit Development Process
  • Complete Confidential Personal Profile to include resume and financials
  • Phone Interview with VP of Franchise Sales
  • Interview with VP of Franchise Sales at CiCi's corporate office
  • Two Day Work Evaluation for Operator
  • Interview with President
  • Assign Development Territory
  • Development Agreement Distributed
  • Development Agreement Signed/Fees Collected
  • Developer Released to Real Estate for Site Identification
  • Begin Training* - 8-12 weeks training process

*NOTE: The VP of Training may require additional training at his/her discretion. The training period may vary based on the Operator's prior operating experience.

**Disclaimer: The financial numbers are for the 2007 fiscal year and are based on 11 company-owned restaurants opened at least eighteen months as of December 30, 2007. Of the 11 company owned restaurants on which the earnings claims are based, 6 (or 55%) of these restaurants had sales of at least $1,004,299 during CiCi's 2007 fiscal year. Of the 11 company owned restaurants on which the earnings claims are based, 5 (or 45%) of these restaurants had annual pre-tax earnings of at least $190,984 for CiCi's 2007 fiscal year. See our Franchise Disclosure Document for more details. The above figures are unaudited. The FTC requires us to include the following statement in the advertisement: CAUTION: The figures are only estimates; this is no assurance that you'll do as well. If you rely on our figures, you must accept the risk of not doing well. The offering is made by prospectus only. None of the communications set forth in this mailing should be construed as an offer to sell any CiCi's Franchise in, nor is any such communication directed to, the residents of any jurisdiction requiring registration of the franchise before it is offered and sold in that jurisdiction. No CiCi's Franchises will be sold to any resident of any such jurisdiction until the offering has been exempted from the requirements of, or duly registered in and declared effective by, such jurisdiction and the required Franchise Disclosure Document has been delivered to the prospective franchisee before the sale in compliance with applicable law. If you have any questions concerning the registration status of CiCi's Franchises in your jurisdiction, please contact Jim Sheahan at (972) 745-4200.