Risk Score
Pending analysis
Investment Range
$30,000 - $1,019,140
Total US Locations
273
Business Summary
Cicis Pizza operates pizza restaurants that specialize in pizza and other foods. Cicis Pizza offers two main restaurant types: Cicis Buffet Restaurants, which are primarily dine-in and buffet-style, and Cicis To Go Restaurants, which focus on carry-out services with either no or limited seating. Both types of Cicis Pizza restaurants offer similar menu items, including pizza, pastas, salads, and desserts, and provide catering, carry-out, and online delivery options.
Corporate History
On Smile LLC was formed in Delaware on February 16, 2021, and its sole purpose is to offer, sell, and service Cicis Pizza restaurant franchises. The company began offering franchises for Cicis Pizza restaurants on May 28, 2021. On Smile LLC operates as a wholly-owned subsidiary of CiCi Acquisition Company, LLC, which is part of a larger corporate structure. A predecessor entity, CiCi Enterprises, LP, was responsible for Cicis Pizza franchises from September 2003 until April 2021. Currently, On Smile LLC performs all of CiCi Enterprises, LP's obligations under 164 existing franchise agreements through a service agreement. Other affiliates, CiCi Services LLC, manages the Cicis gift card program, and JMC Restaurant Distribution, LP, oversees the supply chain, selling food products and equipment to Cicis Pizza restaurants. Yes Caps, LLC, another affiliate, holds the ownership of the Cicis trademarks and sublicenses them to On Smile LLC.
Financial Overview
Investment Range
$30,000 - $1,019,140
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
5%
Equipment Costs (Low)
$87,586
Equipment Costs (High)
$447,387
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Cicis Pizza's financial statements for the years ended December 31, 2023, and 2022, received an unqualified audit opinion, indicating that the financial position is presented fairly in all material respects. The company reported a positive working capital position, with current assets exceeding current liabilities. In 2023, Cicis Pizza had cash and cash equivalents of over $2.9 million (plus restricted cash) and achieved a net income of over $5.8 million, suggesting a healthy financial standing without any going concern issues raised by the auditors.
Financing Details
Cicis Pizza does not offer direct or indirect financing to its franchisees. Additionally, Cicis Pizza does not guarantee any notes, leases, or other financial obligations that franchisees may incur.
Performance Metrics
Total US Locations
273
Franchised Units
261
Corporate Units
18
Avg Square Footage
2,875
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
7
Litigation Summary
Cicis Pizza and its affiliates have been involved in several legal matters. In April 2022, an affiliate, SSCP Management, Inc., and CEO Sunil Dharod faced a complaint alleging breach of contract, fraud, and civil conspiracy related to a commercial lease, which was confidentially settled and dismissed by September 2022. More recently, in January and March 2024, two related lawsuits were filed in Dallas County, Texas. These cases involve family members Anand Gala and Sunil Dharod in disputes over the acquisition and co-ownership of the Cicis Pizza brand, with allegations of breach of contract, breach of fiduciary duty, fraud, and civil conspiracy. Both of these cases are currently in the initial pleading stages. Additionally, in 2023, CiCi Enterprises, an affiliate, initiated four separate lawsuits against franchisees for the recovery of outstanding payments.
Bankruptcy History
Cicis Pizza's affiliates, including CiCi Acquisition Company, LLC and CiCi Enterprises, LP, filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code on January 25, 2021, in the U.S. Bankruptcy Court, Northern District of Texas. The court approved a pre-packaged Plan of Reorganization on March 3, 2021, and CiCi Enterprises emerged from bankruptcy on March 10, 2021. By July 2, 2021, the bankruptcy cases for all petitioners except Pizza Parent, LLC were closed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement for an additional 10-year term, Cicis Pizza franchisees must fulfill several conditions. They need to provide written notice between 6 and 9 months before their current term expires, and ensure their restaurant premises and assets meet Cicis Pizza's current System Standards and image. Franchisees must be in good standing, free from defaults, and have satisfied all monetary obligations to Cicis Pizza and its affiliates. They also need to provide satisfactory evidence of their right to occupy the restaurant premises or obtain consent for a new site, including a lease review by Cicis Pizza's approved real estate counsel at the franchisee's expense. The franchisee must execute Cicis Pizza's then-current franchise agreement, which may contain materially different terms, potentially including higher royalty fees and fund contributions. A renewal fee, equal to 25% of the then-current standard initial franchise fee, plus reimbursement for Cicis Pizza's reasonable costs, is required. Lastly, franchisees and their owners must sign a general release of claims against Cicis Pizza and its affiliates and comply with all current qualification and training requirements.
Training & Support Program
Franchisor Assistance
Cicis Pizza provides comprehensive support to its franchisees. Before opening, Cicis Pizza assists with site selection by reviewing and accepting proposed locations (charging a fee for second on-site inspections and travel expenses). Cicis Pizza reviews and accepts lease addendum modifications, provides prototypical architectural and design plans, and conducts on-site construction inspections (charging fees and expenses for these). Franchisees also receive lists of designated suppliers and access to confidential Operations Manuals. An initial training program is provided for the Managing Owner, Operator, General Manager, and Assistant Managers. Post-opening, Cicis Pizza offers marketing and promotional materials for local use and approves all franchisee-proposed marketing efforts. They provide ongoing System Standards, conduct additional training programs and seminars (with potential fees and travel expenses for franchisees), and administer the Cicis marketing fund. For area development agreements, Cicis Pizza reviews proposed restaurant sites. Cicis Pizza may also provide on-site remedial training, for which franchisees pay a per diem fee and travel expenses.
Initial Training Hours
300
Training Location
Dallas/Ft. Worth Area, TX
Ongoing Support
After opening, Cicis Pizza franchisees receive ongoing support through various channels. Cicis Pizza provides marketing and promotional materials for local use at a reasonable cost and retains the right to review and approve all marketing materials proposed by the franchisee. The company also furnishes System Standards and suggested operating procedures for restaurant operations. Franchisees and their designated personnel may be required to attend additional training programs, seminars, and related activities, for which Cicis Pizza may charge a reasonable fee, with franchisees responsible for associated travel, lodging, meals, and wages. Cicis Pizza also administers the Cicis marketing fund. Furthermore, Cicis Pizza may, in its sole discretion, provide on-site remedial training to restaurant personnel upon request or as deemed appropriate, with franchisees covering per diem fees and travel-related expenses for trainers.
Franchise Requirements
Ideal Candidate Profile
Cicis Pizza seeks individuals or entities to become franchisees. An ideal candidate will designate a natural person as the 'Managing Owner' who holds at least a 25% ownership interest and voting power. This Managing Owner will have chief executive officer authority and either directly oversee the restaurant's daily operations or appoint an approved 'Operator' to do so full-time. Both the Managing Owner and any designated Operator, along with General Managers and Assistant Managers, must successfully complete Cicis Pizza's initial training program. Candidates should be prepared for their spouse (if applicable) to be liable for all financial obligations under the franchise agreement, as per a required guaranty. The focus is on individuals or entities with the operational and management capabilities to adhere to Cicis Pizza's standards and ensure continuous, compliant operation of the restaurant.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
Cicis franchisees are granted the right to operate a Cicis restaurant at a single, accepted location within a designated geographic area. Once a site is approved, Cicis establishes a 'Protected Area' around that location where neither Cicis nor other franchisees will operate another Cicis Restaurant. The size of this Protected Area is determined by Cicis based on various market and economic factors, such as demographics, the market penetration of similar businesses, site availability, and market growth trends. The Protected Area typically consists of a portion of a city, county, or a designated market area. However, Cicis retains the right to establish and operate Cicis To Go Restaurants, other restaurant concepts under different brand names, and various distribution channels (such as online sales, catalog sales, telemarketing) within the Protected Area without compensating the franchisee. For area development agreements, Cicis grants 'Development Rights' within a 'Development Area,' which is also defined by market and economic factors and generally covers a portion of a city, county, or designated market area.
Staffing Notes
Cicis Pizza franchisees are responsible for maintaining a competent, conscientious, and trained staff, ensuring good customer relations, and adherence to prescribed dress codes. A Manager, certified by Cicis Pizza after completing the initial training program, must be on duty during all operating hours. The General Manager is required to devote full-time and best efforts to supervising the restaurant's operations. If Cicis Pizza determines that the restaurant is not managed by properly trained and qualified General Managers or Assistant Managers, the franchisee must implement corrective measures within 60 days, including providing interim supervision approved by Cicis Pizza. Franchisees are solely responsible for all decisions regarding the hiring, firing, compensation, and management of their employees, agents, and independent contractors, ensuring compliance with all applicable laws.