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What was the total amount of Cinnaholic's advertising fund liability on December 31, 2022?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

ent allows for collection of marketing fund fees, whose proceeds are restricted to brand name and franchise advertising. Any unused funds are carried forward to subsequent periods. Marketing fund fees collected and expended for the years ending December 31,

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, the marketing fund fees collected but not yet spent as of December 31, 2022, amounted to $10,218. This figure represents the advertising fund liability for that year. These funds are specifically earmarked for brand name and franchise advertising, and any unspent amounts are carried forward to be used in subsequent periods.

For a prospective Cinnaholic franchisee, this information provides insight into how the franchise manages its advertising funds. The fact that unspent fees are carried forward suggests that Cinnaholic aims to utilize all collected marketing funds effectively. It also indicates that the franchisees' contributions to the marketing fund are tracked and accounted for properly.

It's worth noting that the amount of unspent marketing fund fees can fluctuate from year to year, as seen by the $0 unspent as of December 31, 2023. This variation could be due to changes in advertising strategies, marketing campaigns, or the timing of expenditures. Franchisees may want to inquire about Cinnaholic's marketing plans and how the advertising fund is allocated to ensure transparency and alignment with their business goals.

Understanding the advertising fund liability is crucial for franchisees, as it directly impacts the brand's marketing efforts and, consequently, the potential success of their individual Cinnaholic locations. By examining these figures, prospective franchisees can assess Cinnaholic's commitment to marketing and advertising, which is a key factor in attracting and retaining customers.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.