When are Cinnaholic Royalty Fee payments due?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
11.2. Advertising Fund. In addition to all other amounts required to be paid hereunder, during the term hereof, Franchisee must pay to Franchisor, or such other entity designated by Franchisor, an amount based upon Gross Sales to be designated by Franchisor from time to time, in its sole discretion, provided such amount shall not exceed 2% of Gross Sales (the "Advertising Fee"), which amount shall be used by the Advertising Fund (as such term is hereinafter defined). The Advertising Fee shall be the same for all CINNAHOLIC® franchisees. Payment of the Advertising Fee shall be made on or before Tuesday of each week and be based upon Gross Sales of the Bakery for the preceding week. Advertising Fees shall be paid concurrently with the payment of the Royalty Fees.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, royalty fee payments are due on or before Tuesday of each week, based on the Gross Sales of the bakery for the preceding week. This means that Cinnaholic franchisees must calculate their gross sales for the previous week and remit the required royalty fee by Tuesday of the following week.
In addition to royalty fees, Cinnaholic franchisees are also required to pay an Advertising Fee, which cannot exceed 2% of Gross Sales. This Advertising Fee is also due on or before Tuesday of each week, paid concurrently with the royalty fees. The Advertising Fee is used for the production or purchase of advertising materials and services, managed at the discretion of Cinnaholic.
It is important for prospective Cinnaholic franchisees to understand these payment terms and ensure they have systems in place to accurately track gross sales and make timely payments. Failure to make prompt payments can result in a loss of credit rating and standing, which can be detrimental to both the franchisee and the Cinnaholic system as a whole. Franchisees must also stay current with payments for supplies and equipment, notifying Cinnaholic immediately if they become more than 90 days delinquent on any obligations.