For a Cinnaholic franchise, what sales period is the Advertising Fee based on?
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, the Advertising Fee is based on the Gross Sales of the Bakery for the preceding week. Franchisees must pay the Advertising Fee to Cinnaholic, or an entity designated by Cinnaholic, on or before Tuesday of each week.
The amount of the Advertising Fee is determined by Cinnaholic, but it cannot exceed 2% of Gross Sales. This fee is the same for all Cinnaholic franchisees. The Advertising Fee is paid concurrently with the Royalty Fees.
These advertising fees are used for the Advertising Fund, which supports the production or purchase of advertising materials and services deemed necessary by Cinnaholic. This advertising can be on a national, regional, or local basis. Cinnaholic retains control over the expenditure of these funds, aiming to maximize brand recognition and sales for all Cinnaholic bakeries.