How are unused Advertising Fund monies distributed if Cinnaholic terminates the fund?

According to Cinnaholic's 2025 Franchise Disclosure Document, if Cinnaholic terminates the Advertising Fund, all unused monies will be distributed to the contributors. The distribution will be in proportion to each contributor's respective contributions during a pre-determined period.

For a prospective Cinnaholic franchisee, this means that if the Advertising Fund is terminated, they may receive a portion of the remaining funds back, based on how much they contributed to the fund compared to other franchisees. This is a potential benefit, as it allows franchisees to recoup some of their advertising contributions if the fund is discontinued.

It is important to note that the specific "pre-determined period" used to calculate each franchisee's proportional share is not defined in the FDD. A prospective franchisee should seek clarification from Cinnaholic regarding the length and timing of this period to fully understand how the distribution would be calculated. Also, Cinnaholic states that fund expenses were more than fund contributions during the 2024 fiscal year, so it is possible that there may not be unused monies to distribute if the fund is terminated.