Does Cinnaholic have sole discretion over the creative concepts used in advertising programs developed with funds from the Advertising Fund?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
We use the Advertising Fund to create, among other things, promotional advertising, marketing programs, market research and marketing and advertising activities. We direct all advertising programs developed with funds from the Advertising Fund and have sole discretion over the creative concepts, materials, media used, media placement, and allocation of these programs. Any advertising program or campaign we develop may include dissemination of advertising through print, radio, television, point-of-purchase materials, or other media. This coverage may be local, regional, or national in scope. We may employ an advertising agency or other agency to assist in the development, production, and dissemination of advertising materials, or we may hire personnel to perform these functions. We have no obligation to spend any amount on advertising in the area where your Bakery is located. (See Franchise Agreement, Section 11.2.) In fact, we have no obligation to spend the Advertising Funds to benefit all franchisees or to ensure the monies are used proportionately or equivalent to a franchisee's contributions to the Advertising Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic directs all advertising programs developed with funds from the Advertising Fund and has sole discretion over the creative concepts, materials, media used, media placement, and allocation of these programs. This means that while franchisees contribute to the Advertising Fund, Cinnaholic ultimately decides how the money is spent and what creative direction the advertising takes.
This level of control allows Cinnaholic to maintain brand consistency across all advertising efforts, which is a common practice in franchising. The advertising programs may include dissemination through print, radio, television, point-of-purchase materials, or other media, and can be local, regional, or national in scope. Cinnaholic has the option to employ an advertising agency or hire personnel to assist in these functions.
However, Cinnaholic does not have an obligation to spend any amount on advertising in the area where a franchisee's Bakery is located, nor are they obligated to ensure the Advertising Funds benefit all franchisees proportionately to their contributions. While Cinnaholic may form an advisory council to improve advertising, this council acts solely in an advisory capacity and does not have decision-making authority.