When are grand opening expenses due for a Cinnaholic location?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Grand Opening (See Note 9) | $5,000 to $7,000 | As Arranged | As Arranged | Suppliers |
- Note 9: You must conduct a grand opening promotion with the opening of your Bakery.
You must pay all costs of the grand opening, including publicity costs, pre and/or post opening coaching, promotional costs, plus the full cost of any price reductions or other customer inducements. $1,500 to $2,000 (of the $5,000) must be spent on a public relations vendor of our choice or approval.
Costs may vary depending on your market and the type of advertising used, however, you must spend a minimum of $5,000 during the period 30 days before and 60 days after the opening of your Bakery or, if you purchased an existing Bakery, 60 days after the purchase of your Bakery.
Part of your grand opening promotion will include obtaining pre and/or post opening coaching by a vendor designated by us and the cost of this coaching will count toward your required grand opening promotion expenditures.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, grand opening expenses, which range from $5,000 to $7,000, are due 'As Arranged.' This means the timing of these payments is flexible and will depend on agreements made with suppliers.
Cinnaholic requires franchisees to conduct a grand opening promotion upon opening their bakery. Franchisees must cover all associated costs, including publicity, pre- and post-opening coaching, promotional activities, and any price reductions or customer incentives offered. A portion of the grand opening budget, specifically $1,500 to $2,000 (of the $5,000 minimum), must be allocated to a public relations vendor approved by Cinnaholic.
The FDD specifies that a minimum of $5,000 must be spent on the grand opening during the period from 30 days before to 60 days after the bakery's opening. If a franchisee purchases an existing Cinnaholic bakery, the $5,000 minimum must be spent within 60 days after the purchase. Part of the grand opening promotion includes pre- and/or post-opening coaching by a vendor designated by Cinnaholic, and the cost of this coaching counts toward the required grand opening promotion expenditures.
Prospective franchisees should clarify with Cinnaholic the specific payment arrangements for grand opening expenses. Understanding when these payments are due is crucial for managing cash flow during the initial phase of the business. It is also important to understand what options you have for a public relations vendor.