When must a Cinnaholic franchisee submit 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 are required to submit a statement of local advertising expenditures. This statement, along with any required invoices, must be delivered to Cinnaholic within 15 days after the end of each calendar quarter. The statement should be in a format that is satisfactory to Cinnaholic.
This requirement ensures that Cinnaholic franchisees are adhering to the local advertising obligations outlined in the franchise agreement. Specifically, franchisees must spend a reasonable amount each calendar quarter on local market advertising, with a minimum of 2% of gross sales per calendar quarter. The statement allows Cinnaholic to verify that franchisees are meeting this minimum spending requirement and that the funds are being used appropriately for local advertising efforts.
Failure to submit the statement of local advertising expenditures within the specified timeframe could result in a late submission fee. The FDD specifies that Cinnaholic may charge a $100 late fee if any required reports or information are not received by the deadline. Therefore, it is crucial for prospective Cinnaholic franchisees to understand and comply with these reporting requirements to avoid potential penalties and maintain a good standing with the franchisor.