What tax forms are Cinnaholic franchisees required to submit?

According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees must provide an annual copy of their signed 1120 or 1120S tax form, including all supporting schedules, as filed with the Internal Revenue Service. This also includes any forms that may replace these forms in the future. These documents, along with all other federal, state, and local sales and use and income tax reports the franchisee is required to file, must be delivered within 30 days after filing.

In addition to specific tax forms, Cinnaholic franchisees must also submit annual financial statements compiled or reviewed by an independent certified public accountant in a form satisfactory to Cinnaholic. These statements should include a statement of income and retained earnings, a statement of cash flows, and a balance sheet for the fiscal year. If a franchisee does not typically obtain these financial statements, they may provide internally prepared statements certified as true and correct by the franchisee or their principal executive officer or chief financial officer.

Cinnaholic retains the right to request audited annual statements from franchisees at any time, though the franchisee will bear the expense of such audits. Franchisees are also obligated to provide a statement of local advertising expenditures made each calendar quarter and fiscal year to date, along with supporting invoices if required by Cinnaholic, within 15 days after the end of each calendar quarter. Failure to submit these reports or other required information by the specified deadlines may result in a late submission fee of $100.00.

It is important for prospective Cinnaholic franchisees to understand these reporting requirements and ensure they have the resources and systems in place to comply with them. Consistent and timely reporting is crucial for maintaining a good relationship with the franchisor and avoiding potential penalties.