For a Cinnaholic franchise, what day of the week is the Advertising Fee due?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
11.2. Advertising Fund. 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 due on or before Tuesday of each week. This fee is calculated based on the Gross Sales of the bakery for the preceding week. The Advertising Fee payment is made concurrently with the Royalty Fees.
The Advertising Fee cannot exceed 2% of Gross Sales and is used by the Advertising Fund for advertising materials and services. These advertising efforts are intended to benefit Cinnaholic franchisees through increased brand recognition and sales. However, the franchisor does not guarantee that each individual bakery will benefit proportionally to its contributions.
As a prospective franchisee, it's important to understand that the franchisor has control over how the Advertising Fund is spent. While the goal is to support the Cinnaholic brand as a whole, individual locations may not see direct benefits that match their specific contributions. Franchisees should factor this cost and its potential impact into their financial projections.