For a Cinnaholic franchise, how often is the Advertising Fee paid?
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 Cinnaholic's 2025 Franchise Disclosure Document, franchisees are required to pay the Advertising Fee on a weekly basis. Specifically, the Advertising Fee payment is due on or before Tuesday of each week. This payment is calculated based on the Gross Sales of the bakery for the preceding week.
The Advertising Fee is determined by the franchisor, but it cannot exceed 2% of Gross Sales. This fee is used for the Advertising Fund, which supports advertising efforts on national, regional, or local levels. These advertising efforts aim to maximize brand recognition and sales for all Cinnaholic bakeries.
It is important to note that the Advertising Fee is paid concurrently with the Royalty Fees. This means that franchisees must manage their cash flow to accommodate both fees on a weekly basis. Franchisees should factor this weekly payment schedule into their financial planning and ensure they have systems in place to accurately track and remit these fees in a timely manner.