Must Cinnaholic's acceptance of a proposed site be in writing?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
To be effective, any acceptance of a proposed site by Franchisor must be in writing.
Developer acknowledges and agrees that Franchisor may reject any proposed site for any reason in its sole discretion, in which event, Developer may not develop a Bakery at the rejected site, but must locate another proposed site for the Bakery and submit it to Franchisor for acceptance in accordance with this Section 7.1.
7.2.
Disclaimer.
The acquisition in any manner of any proposed site, whether by option, purchase, lease or otherwise, before written acceptance by Franchisor shall be at the sole risk and responsibility of Developer and shall not obligate Franchisor in any way to accept such site or enter into a Franchise Agreement with Developer for the operation of a CINNAHOLIC® Bakery at such site.
Developer understands and agrees that Franchisor's acceptance of a site (including any lease, sublease, or purchase agreement) for a Bakery is not an assurance or a guarantee by Franchisor of the suitability of such site for a CINNAHOLIC® Bakery or the success of any particular CINNAHOLIC® Bakery established at such site.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisor's acceptance of a proposed site must be in writing to be considered effective. This requirement is explicitly stated in Item 7.1 regarding site selection and acceptance. This means that a verbal agreement or any other form of communication besides a written document is not sufficient for Cinnaholic to approve a location.
This stipulation protects both Cinnaholic and the developer (franchisee). For Cinnaholic, it ensures a formal record of approved locations, maintaining brand consistency and strategic growth. For the developer, it provides assurance that the site has been officially sanctioned, allowing them to proceed with the next steps, such as securing the lease and beginning construction, with confidence. Without written acceptance, the developer bears the risk of investing time and resources into a site that may not ultimately be approved.
The FDD also states that acquiring a site before written acceptance from Cinnaholic is at the developer's sole risk. This means that if a developer chooses to option, purchase, or lease a site before receiving written approval, Cinnaholic is not obligated to accept the site or enter into a Franchise Agreement for that location. The developer is fully responsible for any financial or other consequences if the site is later rejected. This underscores the importance of waiting for formal written approval before making any commitments to a specific location.
Furthermore, the document clarifies that Cinnaholic's acceptance of a site does not guarantee the site's suitability or the success of the bakery. The suitability of a site and the success of the bakery depend on many factors outside the control of Cinnaholic, such as economic conditions and the developer's efforts in operating the bakery. This disclaimer emphasizes that while Cinnaholic provides guidance and approval, the ultimate success of the location rests on the franchisee's business acumen and external market factors.