What is the Insufficient Funds Service Fee 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, an Insufficient Funds Service Fee of $100 per occurrence is charged if any payments made to Cinnaholic are not honored by the franchisee's financial institution. This fee is due immediately upon demand.
This means that if a franchisee's payment, such as for royalties or advertising fees, is rejected due to insufficient funds in their account, they will incur this $100 fee in addition to the original payment amount. Franchisees should ensure they have sufficient funds available when payments are due to avoid this charge.
Insufficient funds fees are a fairly standard practice in franchising and other business relationships. The fee is intended to cover the administrative costs and potential financial losses incurred by Cinnaholic due to the rejected payment. Franchisees should maintain careful oversight of their bank balances and payment schedules to prevent these fees.