When is the Advertising Deficiency fee due for a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Local Advertising | A minimum of 2% of Gross Sales | As incurred | You must make local advertising expenditures as required by Section 11.3 of the Franchise Agreement. You may determine the form and media, subject to our approval before you make the expenditures. |
| 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 meet the local advertising expenditure requirements, which are a minimum of 2% of Gross Sales. If a Cinnaholic franchisee does not fulfill their local advertising obligations, Cinnaholic has the right to conduct advertising on the franchisee's behalf, and the franchisee must then reimburse Cinnaholic for these expenditures.
This means that if a Cinnaholic franchisee falls short on their local advertising commitment, they should be prepared to pay the deficiency promptly when Cinnaholic requests reimbursement. The amount will be equal to the local advertising deficiency.
It is important for prospective Cinnaholic franchisees to understand the local advertising requirements and ensure they allocate sufficient funds to meet these obligations to avoid incurring this additional fee. Franchisees should maintain detailed records of their advertising expenditures to demonstrate compliance and avoid any potential disputes with Cinnaholic.