Is a Cinnaholic franchisee required to participate in national, regional, or local advertising and promotional activities?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ent be more than once in any calendar year, using paints which will be in accordance with specifications given by Franchisor.
- (xv) Ensure that an individual who has completed the initial training program described in Section 14.1 below is at the Bakery at all times during normal business hours as established by Franchisor from time to time.
- (xvi) Participate in all national, regional or local advertising and promotional activities Franchisor requires. Franchisee understands that Franchisor implements promotions such as discount coupons, certificates, frequent customer cards, special menu promotions, gift cards and other activities intended to enhance customer awareness and build traffic at CINNAHOLIC® Bakeries on a national, regional or local level. Franchisor may establish procedures and regulations related to these promotions in the Operations Manual and Franchisee agrees to honor and participate in these programs in accordance with such procedures and regulations specified by Franchisor in the Operations Manual or otherwise in writing. Franchisee understands that its participation in these programs is essential to its success and that its participation may entail some cost to Franchisee. Franchisee agrees that Franchisor has no obligation to reimburse Franchisee for any costs it incurs due to its mandatory participation in these special promotional programs.
- (xvii) Without limiting any of Franchisee's other obligations under this Agreement, at the request of Franchisor, but not more often than once every 5 years, unless sooner required by Franchisee's lease, Franchisee shall refurbish the premises of the Bakery at its expense, to conform to the Bakery, trade dress, color schemes and presentation of the Marks in a manner consistent with the thencurrent image for new Bakeries ("Refurbishments"). Refurbishments may include structural changes, installation of new equipment and signs, remodeling, redecoration and modifications to existing improvements. Refurbishments are intended to be large-scale re-equipping, refurbishing and remodeling of the Bakery, and nothing contained in this Subsection (xvii) of this Agreement will limit Franchisee's other obligations under this Agreement or the Operations Manual.
- (xviii) Become a member of any purchasing and/or distribution cooperative(s)/association(s)/program(s) designated by Franchisor and/or established by Franchisor for the CINNAHOLIC® System, remain a member in good standing thereof throughout the term of this Agreement and pay all membership fees or fees on purchases that are assessed by such purchasing and/or distribution cooperative(s)/association(s)/program(s).
- (xix) As required by Franchisor, maintain a contract(s) with, or participate in any Franchisor contract(s), with any third-party(ies) offering customer service, shopper experience, food safety or other service programs designed to audit, survey, evaluate or inspect business operations. Franchisee understands that Franchisor has the right to specify the third party(ies) and the required level of participation in such programs and Franchisee will bear the cost.
10. TECHNOLOGY SYSTEMS AND WEBSITE
10.1. Point of Sale System.
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 participate in advertising and promotional activities at the national, regional, and local levels. Specifically, Cinnaholic franchisees must participate in any promotion, marketing, or advertising campaigns created by the Advertising Fund.
In addition to these campaigns, Cinnaholic franchisees are obligated to spend a minimum of 2% of their gross sales each calendar quarter on local market advertising. If a franchisee fails to meet this requirement, Cinnaholic has the right to spend up to 2% of the bakery's gross sales on local advertising on the franchisee's behalf, with the franchisee responsible for reimbursing Cinnaholic for these expenses. Failure to comply with the local advertising expenditure requirement is considered a material breach of the franchise agreement.
Furthermore, Cinnaholic franchisees must participate in any local, regional, or national cooperative advertising groups if required by Cinnaholic. While the franchisee determines their payments to these cooperatives along with other participants, they cannot be required to spend more than 2% of gross sales per annum on these advertising cooperatives. Amounts paid to an Advertising Cooperative shall be credited against payments Franchisee is otherwise required to make for local advertising. Cinnaholic has the right to specify the third party(ies) and the required level of participation in such programs and Franchisee will bear the cost.