Does Cinnaholic have sole discretion over the materials 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 that are developed with funds from the Advertising Fund. Cinnaholic also has sole discretion over the creative concepts, materials, media used, media placement, and allocation of these programs. This means that franchisees do not have control over how the advertising funds are spent or the content of the advertising campaigns.
Cinnaholic's advertising programs may include print, radio, television, point-of-purchase materials, or other media, and the coverage may be local, regional, or national. Cinnaholic has the option to employ an advertising agency or hire personnel to assist in the development, production, and dissemination of advertising materials. However, Cinnaholic is not obligated to spend any specific amount on advertising in the area where a franchisee's bakery is located, nor are they obligated to ensure that the advertising funds benefit all franchisees proportionately to their contributions.
This arrangement gives Cinnaholic significant control over the brand's image and marketing strategies. While franchisees contribute to the Advertising Fund, they do not have a direct say in how those funds are used. Franchisees are required to participate in any promotional and advertising programs that Cinnaholic establishes. This structure is common in franchising, where the franchisor aims to maintain a consistent brand message and marketing approach across all locations.