According to the recitals, what right does Cinnaholic grant to the developer?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor at a substantial expenditure of time, effort and money has established a system of developing, opening, operating and promoting bakeries specializing in offering custom gourmet cinnamon rolls and other food products and beverages and related bakery services under the name "CINNAHOLIC®" ("CINNAHOLIC® Bakeries" or "Bakeries") ("the CINNAHOLIC® System"). Developer has applied to Franchisor for, and Franchisor desires to grant to Developer, the right to establish and operate a specified number of CINNAHOLIC® Bakeries in accordance with a specified development schedule, all in accordance with the terms and conditions contained herein.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the recitals state that Cinnaholic grants the developer the right to establish and operate a specified number of Cinnaholic bakeries in accordance with a specified development schedule. This right is subject to the terms and conditions outlined in the agreement.
This means that Cinnaholic is authorizing the developer to open and run a certain number of Cinnaholic bakeries, but this authorization is not open-ended. The number of bakeries and the timeline for opening them are predetermined and specified in a development schedule, which is included as Exhibit A to the agreement. The developer must adhere to this schedule to maintain their rights.
This grant of rights is conditional, meaning the developer must comply with all the terms and conditions of the agreement to maintain the right to establish and operate the bakeries. This could include meeting certain performance standards, maintaining the brand's standards, and fulfilling financial obligations. Prospective developers should carefully review the development schedule and all terms and conditions to fully understand their obligations and the scope of the rights granted.