Does Cinnaholic direct all advertising programs developed with funds from the Advertising Fund?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
We use the Advertising Fund to create, among other things, promotional advertising, marketing programs, market research and marketing and advertising activities. We direct all advertising programs developed with funds from the Advertising Fund and have sole discretion over the creative concepts, materials, media used, media placement, and allocation of these programs. Any advertising program or campaign we develop may include dissemination of advertising through print, radio, television, point-of-purchase materials, or other media. This coverage may be local, regional, or national in scope. We may employ an advertising agency or other agency to assist in the development, production, and dissemination of advertising materials, or we may hire personnel to perform these functions. We have no obligation to spend any amount on advertising in the area where your Bakery is located. (See Franchise Agreement, Section 11.2.) In fact, we have no obligation to spend the Advertising Funds to benefit all franchisees or to ensure the monies are used proportionately or equivalent to a franchisee's contributions to the Advertising Fund.
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, Cinnaholic directs all advertising programs that are developed with funds from the Advertising Fund. Cinnaholic has sole discretion over the creative concepts, materials, media used, media placement, and allocation of these programs.
The advertising programs developed by Cinnaholic may include print, radio, television, and point-of-purchase materials. The advertising can be local, regional, or national in scope. Cinnaholic has the option to employ an advertising agency or hire personnel to assist in these advertising functions.
Cinnaholic is not obligated to spend any specific amount on advertising in the area where a franchisee's bakery is located, nor are they obligated to ensure that the advertising funds are used proportionately or equivalent to a franchisee's contributions to the Advertising Fund. This means that while franchisees contribute to the fund, they may not directly benefit from it in their specific location.
Prospective franchisees should consider that while they are required to contribute to the Advertising Fund, Cinnaholic has complete control over how those funds are spent and is not obligated to use them in a way that directly benefits each franchisee. This is a common practice in franchising, but it's important for franchisees to understand the potential implications.