When is the Insufficient Funds Service Fee due for a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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 payment made to Cinnaholic by a franchisee is not honored by the franchisee's financial institution.
This means that if a franchisee's check bounces or an electronic transfer fails due to insufficient funds, Cinnaholic will immediately require payment of the $100 fee in addition to the original amount owed. This policy is fairly standard in franchising, as it covers the administrative costs and potential financial losses incurred by the franchisor due to failed payments.
Prospective Cinnaholic franchisees should ensure they maintain sufficient funds in their accounts to cover all payments to Cinnaholic to avoid incurring this fee. It's also important to understand the various payment schedules for royalties, advertising fees, and other ongoing costs to proactively manage their finances and prevent any unintentional insufficient funds situations.