What is the basis for distributing unused monies if Cinnaholic terminates the Advertising Fund?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
e Advertising Fund. We may defer or reduce a franchisee's contribution. If we terminate the Advertising Fund, we will distribute all unused monies to the contributors in proportion 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, if Cinnaholic terminates the Advertising Fund, any unused monies will be distributed to the contributors. The distribution will be in proportion to each contributor's respective contributions during a pre-determined period.
For a prospective franchisee, this means that if the Advertising Fund is terminated, they may receive a portion of the remaining funds back. The amount they receive will depend on how much they contributed to the fund compared to other franchisees during the period Cinnaholic determines.
For the 2024 fiscal year end, Cinnaholic collected $504,162.50 in the Ad Fund and expended $444,137.79. The expenses included Online Advertising (20.22%), Social Media (60.36%), Marketing Consultants (13.91%), Creative (2.89%), Publication Ads (.88%), Website (1.36%), Administrative (.30%), and Miscellaneous (.08%). $60,024.71 was collected in 2024, but not expended, and remains in the Fund for use in 2025 or later years.