What is the Insufficient Funds Service Fee charged by Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest and Late Payment Fees | Up to the highest rate permitted by law but no more than 18% per annum plus $100 per occurrence | Immediately on demand | Payable on all overdue amounts. Interest begins from the date of non-payment or underpayment. |
| Insufficient Funds Service Fee | $100 per occurrence | Immediately on demand | Payable if any of your payments to us are not honored by your financial institution. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if a franchisee's payment to Cinnaholic is not honored by their financial institution, Cinnaholic will charge an Insufficient Funds Service Fee of $100 per occurrence. This fee is due immediately upon demand.
This means that if a franchisee attempts to make a payment to Cinnaholic, such as for royalties or advertising fees, and the bank rejects the payment due to insufficient funds, the franchisee will be assessed this $100 fee in addition to the original payment amount. Franchisees should ensure they have sufficient funds available in their account to cover all payments to Cinnaholic to avoid incurring this fee.
Many franchisors have similar fees to cover the administrative costs associated with handling rejected payments. Franchisees should maintain careful financial management to avoid these charges.