What other documents must a Cinnaholic franchisee provide to the franchisor annually?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
. on each Tuesday;
- (ii) A monthly unaudited balance sheet and profit and loss statement in a form satisfactory to Franchisor covering Franchisee's business for the prior month and fiscal year to date, all of which shall be certified by Franchisee as true and correct and delivered to Franchisor no later than the 21st day of each month;
- (iii) Annual financial statements compiled or reviewed by an independent certified public accountant in a form satisfactory to Franchisor, which shall include a statement of income and retained earnings, a statement of cash flows, and a balance sheet of Franchisee, all for the fiscal year then ended. If Franchisee does not, in the ordinary course, obtain financial statements compiled or reviewed by an independent certified public accountant, then Franchisee may provide internally prepared financial statements which shall be certified as true and correct by Franchisee or Franchisee's principal executive officer or chief financial officer if Franchisee is a partnership, corporation or limited liability company. Franchisor shall have the right at any time to require audited annual statements to be provided to it, at Franchisee's expense;
- (iv) An annual copy of Franchisee's signed 1120 or 1120S tax form (including all supporting schedules) as filed with the Internal Revenue Service (or any forms which take the place of those forms), and all other federal, state and local sales and use and income tax reports Franchisee is required to file, all to be delivered within 30 days after filing;
- (v) A statement of local advertising expenditures made pursuant to Section 11.3 below for each calendar quarter and fiscal year to date, in a form satisfactory to Franchisor, along with invoices documenting such expenditures (if required by Franchisor), to be delivered within 15 days after the end of each calendar quarter;
- (vi) Insurance certificates upon the annual renewal of the policies and all health and safety inspection reports; and
- (vii) Any other data, information and supporting records reasonably requested by Franchisor, including account login and password information for any delivery service applications, social media sites or other electronic media.
All reports or other information required to be submitt
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees must provide several documents to the franchisor on an annual basis. These include annual financial statements, which should be compiled or reviewed by an independent certified public accountant in a format that Cinnaholic finds satisfactory. These statements must include a statement of income and retained earnings, a statement of cash flows, and a balance sheet for the fiscal year. If a franchisee does not typically obtain financial statements compiled or reviewed by an independent accountant, they may provide internally prepared statements certified as true and correct by the franchisee or their principal executive officer or chief financial officer. However, Cinnaholic retains the right to require audited annual statements at the franchisee's expense.
In addition to financial statements, Cinnaholic franchisees must also submit an annual copy of their signed 1120 or 1120S tax form (including all supporting schedules) as filed with the Internal Revenue Service, as well as all other federal, state, and local sales and use and income tax reports they are required to file. These tax documents must be delivered within 30 days after filing. Franchisees are also required to provide insurance certificates upon the annual renewal of their policies and all health and safety inspection reports.
Furthermore, franchisees must submit a statement of local advertising expenditures made for each calendar quarter and fiscal year to date, in a form satisfactory to Cinnaholic, along with invoices documenting such expenditures (if required by Cinnaholic). This statement is due within 15 days after the end of each calendar quarter. Finally, franchisees must provide any other data, information, and supporting records reasonably requested by Cinnaholic, including account login and password information for any delivery service applications, social media sites, or other electronic media. All reports and information must be submitted to Cinnaholic's franchise department, and failure to meet the deadlines may result in a late submission fee of $100.00.