What was the total amount of unexpended funds collected in 2024 that remains in the Cinnaholic Advertising Fund?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
rtion to their respective contributions during a pre-determined period. For the 2024 fiscal year end, we collected $504,162.50 in the Ad Fund. We expended $444,137.79 in the following approximate proportions: Online Advertising ($89,825.20, or 20.22%), Social Media ($268,087.81, or 60.36%), Marketing Consultants ($61,800, or 13.91%), Creative ($12,846.00, or 2.89%), Publication Ads ($3,916.85, or .88%), Website ($6,030.88, or 1.36%), Administrative ($1,333.65, or .30%), and Miscellaneous ($297.40, or .08%). Fund expenses were more than Fund contributions during the year. $60,024.71 was collected in 2024, b
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, $60,024.71 collected in 2024 was not expended and remains in the Advertising Fund. These funds are designated for use in 2025 or later years. This indicates that Cinnaholic does not necessarily spend all advertising funds in the year they are collected.
For a prospective franchisee, this means that the advertising contributions they make may not be used immediately but will be carried over for future advertising initiatives. It also suggests that Cinnaholic may strategically manage its advertising budget, potentially accumulating funds for larger campaigns or to address future marketing needs.
It's important to note that the FDD also states that fund expenses were more than fund contributions during the year. This could mean that Cinnaholic is willing to invest more in advertising than it collects in a given year, potentially benefiting franchisees. However, it also opens the possibility that the Advertising Fund may borrow from third-party lenders to cover deficits, with those lenders receiving interest on the borrowed funds.