Does Cinnaholic have sole discretion over the media 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 maintains sole discretion over the advertising programs developed with funds from the Advertising Fund. This includes the creative concepts, materials, media used, media placement and allocation of these programs. Cinnaholic has the right to disseminate advertising through various media channels such as print, radio, television, and point-of-purchase materials, and the scope of this advertising can be local, regional, or national.
This level of control means that franchisees have limited input regarding how the advertising funds are spent and the types of advertising campaigns that are run. Cinnaholic is not obligated to spend any 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.
While Cinnaholic may form an advisory council to provide input on advertising and other matters, this council acts solely in an advisory capacity and does not have decision-making authority. 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 brand consistency and control marketing efforts across the entire system.