For a Cinnaholic franchise, is the Advertising Fee the same for all franchisees?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to all other amounts required to be paid hereunder, during the term hereof, Franchisee must pay to Franchisor, or such other entity designated by Franchisor, an amount based upon Gross Sales to be designated by Franchisor from time to time, in its sole discretion, provided such amount shall not exceed 2% of Gross Sales (the "Advertising Fee"), which amount shall be used by the Advertising Fund (as such term is hereinafter defined). The Advertising Fee shall be the same for all CINNAHOLIC® franchisees. Payment of the Advertising Fee shall be made on or before Tuesday of each week and be based upon Gross Sales of the Bakery for the preceding week. Advertising Fees shall be paid concurrently with the payment of the Royalty Fees.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the Advertising Fee is the same for all franchisees. The franchisee must pay the franchisor an Advertising Fee based on Gross Sales. The specific amount is determined by Cinnaholic, but it cannot exceed 2% of Gross Sales. This fee is paid weekly, along with Royalty Fees.
The Advertising Fee is used for the benefit of Cinnaholic, the franchisee, and other franchisees. These funds are intended to maximize brand recognition and sales for all Cinnaholic bakeries. Cinnaholic has control over how the Advertising Fund is spent and is not obligated to ensure that each bakery benefits in proportion to its contributions.
In addition to the Advertising Fee, Cinnaholic franchisees must spend a reasonable amount each calendar quarter on local market advertising, but no less than 2% of Gross Sales per calendar quarter. If a franchisee fails to make these local advertising expenditures, Cinnaholic has the right to spend up to 2% of the bakery's Gross Sales on local advertising on behalf of the franchisee, and the franchisee must reimburse Cinnaholic for these expenses.