When are Additional On-Site Training fees due to Cinnaholic for failure to maintain standards?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Additional On-Site Training due to Failure to Maintain Standards | Will vary under the circumstances | As incurred | See Note 5. |
Note 5: If we notify you in writing that you have failed to maintain standards at the Bakery, and you fail to cure the failure within 10 days, we have the right to assign trainers to your Bakery and you have to reimburse us for the trainers' salaries, travel and living expenses and other related expenses. We estimate that the cost of this additional training may range from $500 to $5,000 depending on the extent of the training required and the distance our trainers need to travel.
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees may incur additional on-site training fees if they fail to maintain the brand's standards at their bakery. These fees are due 'as incurred,' meaning they become payable as Cinnaholic provides the training services. The specific circumstances triggering these fees involve Cinnaholic notifying the franchisee in writing about the failure to maintain standards and the franchisee's subsequent failure to correct the issues within 10 days.
If the franchisee does not rectify the deficiencies within the given timeframe, Cinnaholic has the right to assign trainers to the bakery. The franchisee is then responsible for reimbursing Cinnaholic for the trainers' salaries, travel and living expenses, and other related costs. The FDD estimates that these additional training costs could range from $500 to $5,000, depending on the extent of training needed and the distance the trainers must travel.
This policy highlights the importance of maintaining Cinnaholic's standards and the potential financial consequences of failing to do so. Franchisees should be aware that neglecting operational standards can lead to significant additional expenses beyond the standard royalty and advertising fees. It is crucial for prospective franchisees to understand Cinnaholic's operational standards and ensure they have the resources and commitment to uphold them to avoid these additional training fees.