What happens to unused monies in the Cinnaholic Advertising Fund if it is terminated?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
e Advertising Fund. We may defer or reduce a franchisee's contribution. If we terminate the Advertising Fund, we will distribute all unused monies to the contributors in proportion to their respective contributions during a pre-determined period. For the 2024 fiscal year end, we collected $504,162.50 in the Ad Fund. We expended $444,137.79 in the following approximate proportions: Online Advertising ($89,825.20, or 20.22%), Social Media ($268,087.81, or 60.36%), Marketing Consultants ($61,800, or 13.91%), Creative ($12,846.00, or 2.89%), Publication Ads ($3,916.85, or .88%), Website ($6,030.88, or 1.36%), Administrative ($1,333.65, or .30%), and Miscellaneous ($297.40, or .08%). Fund expenses were more than Fund contributions during the year. $60,024.71 was collected in 2024, b
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, if the Advertising Fund is terminated, all unused monies will be distributed to the contributors. The distribution will be proportional to each contributor's respective contributions during a pre-determined period.
For franchisees, this means that if the Cinnaholic advertising fund is discontinued, they may receive a portion of the remaining funds back, based on how much they contributed to the fund over a specific period. This is a potential benefit, as franchisees could recoup some of their advertising contributions if the fund is terminated.
In 2024, Cinnaholic collected $504,162.50 in the Ad Fund and expended $444,137.79. The expenses covered online advertising, social media, marketing consultants, creative work, publication ads, website maintenance, administrative costs, and miscellaneous expenses. At the end of the 2024 fiscal year, $60,024.71 remained in the fund for use in 2025 or later years. This demonstrates that Cinnaholic may carry over unspent funds from year to year, which could potentially increase the amount distributed if the fund is terminated.