When are Local Advertising expenditures incurred for a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Local Advertising | A minimum of 2% of Gross Sales | As incurred | You must make local advertising expenditures as required by Section 11.3 of the Franchise Agreement. You may determine the form and media, subject to our approval before you make the expenditures. |
| Advertising Deficiency | Amount of Local Advertising Deficiency | Immediately upon demand | If you fail to make local advertising expenditures, we may do so on your behalf and you will reimburse us for those expenditures. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, local advertising expenditures are incurred as they happen. Franchisees are required to spend a minimum of 2% of gross sales on local advertising. The form and media of the advertising are determined by the franchisee but are subject to Cinnaholic's approval before the expenditures are made.
If a Cinnaholic franchisee fails to make the required local advertising expenditures, Cinnaholic has the right to make those expenditures on behalf of the franchisee. In this case, the franchisee is required to reimburse Cinnaholic immediately upon demand for the amount spent.
It is important for prospective Cinnaholic franchisees to understand that while they have some control over their local advertising, Cinnaholic retains approval rights. Franchisees should factor in the ongoing cost of local advertising, which is a minimum of 2% of gross sales, into their operating budget.