For Cinnaholic, what is included in the definition of 'Annual Revenue' and what is specifically excluded?

According to Cinnaholic's 2025 Franchise Disclosure Document, "Annual Revenue" is defined as all revenue, excluding returns, sales taxes, and similar government-imposed fees or taxes. The FDD also notes that "Gross Revenue" has the same meaning as "Annual Revenue," but may be for a shorter period, such as a monthly period. This definition is important for prospective franchisees as it clarifies what income is considered when Cinnaholic presents financial performance representations.

Understanding this definition is crucial for evaluating the financial performance data provided in Item 19 of the FDD. When reviewing the annual revenue figures for existing Cinnaholic units, franchisees should keep in mind that these figures do not include sales taxes or returns. This allows for a more accurate comparison of revenue generated from the actual sale of Cinnaholic products.

Prospective franchisees should also be aware that the financial performance of individual units can vary significantly. For example, the FDD mentions that Cinnaholic Pigeon Forge, Tennessee, had the highest revenue at $639,336.18, while Cinnaholic Gaithersburg, Maryland, had the lowest revenue at $121,519.31 in 2024. This highlights the importance of conducting thorough due diligence and considering factors such as location, market conditions, and operational efficiency when assessing the potential financial performance of a Cinnaholic franchise.