When must a Cinnaholic franchisee provide a statement of local advertising expenditures?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
opy 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)
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees must submit a statement of local advertising expenditures each calendar quarter and for the fiscal year-to-date. This statement, in a format acceptable to Cinnaholic, along with supporting invoices if requested, is due within 15 days after the end of each calendar quarter.
This requirement ensures that Cinnaholic franchisees are adhering to the local advertising obligations outlined in the franchise agreement, which mandates spending a minimum of 2% of gross sales per calendar quarter on local advertising. By providing these statements, franchisees demonstrate their compliance with the advertising requirements and allow Cinnaholic to monitor local advertising efforts.
Failure to submit these statements on time may result in a late submission fee of $100.00, highlighting the importance of adhering to the reporting deadlines. This fee underscores the franchisor's emphasis on timely and accurate reporting of financial and operational data, which is crucial for maintaining brand consistency and overall system performance.