Does Cinnaholic specify the format for the statement of relevant Gross Sales?
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)
Based on the 2025 Cinnaholic Franchise Disclosure Document, franchisees are required to report Gross Sales, but the document does not specify a particular format for this reporting. Cinnaholic franchisees must pay an Advertising Fee, which cannot exceed 2% of Gross Sales, and Royalty Fees, with both payments due on or before Tuesday of each week based on the previous week's sales.
Franchisees are obligated to accurately report their Gross Sales to Cinnaholic, as these figures determine the Advertising Fee and Royalty payments. The absence of a specified format in the FDD means that Cinnaholic may provide specific reporting guidelines or templates through other means, such as the operations manual or direct communication.
It is important for prospective Cinnaholic franchisees to clarify with the franchisor the exact methods and formats required for reporting Gross Sales to ensure compliance and avoid potential discrepancies or penalties. Franchisees should also inquire about any software or systems provided by Cinnaholic to facilitate sales tracking and reporting.