When is the Advertising Deficiency fee due to Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Advertising Deficiency | Amount of Local Advertising Deficiency | Immediately upon demand | If you fail to make local advertising expenditures, we may do so on your behalf and you will reimburse us for those expenditures. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the Advertising Deficiency fee is due immediately upon demand. This fee is incurred if a franchisee fails to make the required local advertising expenditures. In such cases, Cinnaholic may choose to make those expenditures on the franchisee's behalf, and the franchisee is then obligated to reimburse Cinnaholic for the amount spent.
This means that if a Cinnaholic franchisee does not meet their local advertising obligations, they should be prepared to pay the deficiency amount promptly when Cinnaholic requests it. The amount will be equal to the local advertising deficiency.
It is important for prospective Cinnaholic franchisees to understand the local advertising requirements outlined in Section 11.3 of the Franchise Agreement to avoid incurring this fee. Maintaining proper records of advertising expenditures and adhering to the franchisor's guidelines are crucial for compliance.