What approximate proportion of the Cinnaholic Advertising Fund was spent on Website in 2024?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
rtion to their respective contributions during a pre-determined period. For the 2024 fiscal year end, we collected $504,162.50 in the Ad Fund. We expended $444,137.79 in the following approximate proportions: Online Advertising ($89,825.20, or 20.22%), Social Media ($268,087.81, or 60.36%), Marketing Consultants ($61,800, or 13.91%), Creative ($12,846.00, or 2.89%), Publication Ads ($3,916.85, or .88%), Website ($6,030.88, or 1.36%), Administrative ($1,333.65, or .30%), and Miscellaneous ($297.40, or .08%). Fund expenses were more than Fund contributions during the year. $60,024.71 was collected in 2024, b
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, in the 2024 fiscal year, Cinnaholic collected $504,162.50 for its Advertising Fund and expended $444,137.79. Of this amount, approximately $6,030.88, or 1.36%, was spent on the Website. This indicates that a very small portion of the advertising fund was allocated to maintaining or improving the company website during that period.
For a prospective Cinnaholic franchisee, this information highlights how the advertising funds are distributed. The relatively small percentage spent on the website suggests that Cinnaholic may prioritize other advertising channels, such as online advertising and social media, which received significantly larger portions of the fund (20.22% and 60.36% respectively). Franchisees might want to inquire about the effectiveness of the current website and the strategy behind allocating a smaller portion of the budget to it.
It's also important to note that the fund expenses exceeded the contributions in 2024, and the remaining $60,024.71 was carried over for use in 2025 or later. This could imply that Cinnaholic is willing to invest more in advertising than it collects in a given year, potentially benefiting franchisees through increased brand awareness and marketing efforts. However, franchisees should be aware that Cinnaholic does not have a fiduciary duty in administering the Advertising Fund, and the allocation of funds can change.