When is the Insufficient Funds Service Fee due to 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, the Insufficient Funds Service Fee is due immediately on demand. This fee, which amounts to $100 per occurrence, is payable if any payments made to Cinnaholic are not honored by the franchisee's financial institution.
This means that if a franchisee's payment to Cinnaholic is rejected due to insufficient funds, the franchisee will immediately owe Cinnaholic $100 in addition to the original payment amount. This fee is intended to cover the administrative costs and inconvenience Cinnaholic incurs as a result of the failed payment.
Franchisees should ensure they have sufficient funds available when making payments to Cinnaholic to avoid incurring this fee. Since Cinnaholic requires royalty and advertising fees to be paid via automated bank draft, maintaining accurate bank information and sufficient funds is crucial. This policy is fairly standard in the franchise industry, as it protects the franchisor from financial losses due to rejected payments.