When is the Advertising Fund Fee due for a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 5% of Gross Sales unless you are in default for failure to maintain standards | Every Tuesday for the preceding week's Gross Sales | We will debit your bank account for the Royalty Fee due. See Notes 2 and 7. |
| Advertising Fund Fee | 2% of Gross Sales | Same as Royalty Fee | See Item 11 and Note 7. |
| Advertising Cooperatives | May not exceed 2% of Gross Sales. See Note 3 | Same as Royalty Fee or as designated by your cooperative | See Item 11 and Notes 3 and 7. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the Advertising Fund Fee is due every Tuesday for the preceding week's Gross Sales. This aligns with the Royalty Fee and Advertising Cooperative contributions, which share the same due date. The Advertising Fund Fee is 2% of Gross Sales. Cinnaholic will debit the franchisee's bank account for the Advertising Fund Fee due, as stated in Note 7.
This weekly payment schedule means franchisees must maintain consistent cash flow to meet this obligation. Franchisees should factor this weekly expense into their financial projections and business planning. It is also important to note that the advertising cooperative contributions may not exceed 2% of Gross Sales.
Prospective Cinnaholic franchisees should be aware that these fees are collected via automated bank draft, requiring them to authorize electronic transfers from their bank account. This ensures timely payments but also necessitates careful management of their account balances to avoid insufficient funds fees. The consistent weekly deductions for the Royalty Fee, Advertising Fund Fee, and potential Advertising Cooperative contributions require diligent financial oversight.