What action must a prospective Cinnaholic franchisee take upon receiving the Disclosure Document?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
This Disclosure Document summarizes provisions of the development agreement, the franchise agreement and other information in plain language. Read this Disclosure Document and all agreements carefully.
If Cinnaholic Franchising, LLC offers you a franchise, it must provide this Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale. However, some state franchise laws, including New York, require Cinnaholic Franchising, LLC to provide this Disclosure Document to you at the first personal meeting held to discuss the franchise sale or at least 10 business days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
If Cinnaholic Franchising, LLC does not deliver this Disclosure Document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the appropriate state agency identified on Exhibit A.
As you know, Cinnaholic Franchising, LLC ("we", "us" or "our") and you are preparing to enter into a Development Agreement and Franchise Agreement for the operation of a CINNAHOLIC® franchise. The purpose of this Questionnaire is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, to be certain that you have been properly represented in this transaction, and to be certain that you understand the limitations on claims you may make by reason of the purchase and operation of your franchise. You cannot sign or date this Questionnaire the same day as the Receipt for the Franchise Disclosure Document but you must sign and date it the same day you sign the Development Agreement and/or Franchise Agreement and pay your development and/or franchise fee.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, after receiving the document, a prospective franchisee must read it and all agreements carefully. Cinnaholic must provide the Disclosure Document to the prospective franchisee 14 calendar days before they sign a binding agreement or make a payment to Cinnaholic or its affiliates related to the franchise sale.
However, some state franchise laws, such as in New York, require Cinnaholic to provide the Disclosure Document at the first personal meeting to discuss the franchise sale, or at least 10 business days before signing an agreement or making a payment.
If Cinnaholic does not deliver the Disclosure Document on time, or if it contains false, misleading statements, or material omissions, it may constitute a violation of federal and state laws. In such cases, the prospective franchisee should report this to the Federal Trade Commission and the appropriate state agency listed in Exhibit A of the FDD. Additionally, the franchisee must complete the Franchisee Disclosure Questionnaire, but not on the same day as receiving the Disclosure Document. It must be signed and dated the same day the Development Agreement and/or Franchise Agreement is signed and the development and/or franchise fee is paid.