After Cinnaholic approves a site, what is the developer required to do regarding the lease, sublease, or purchase agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon Franchisor's written acceptance of a proposed site in accordance with Section 7.1 above, Developer shall proceed promptly to enter into the approved lease, sublease or purchase agreement for the accepted site and obtain all necessary zoning, building and other governmental or regulatory approvals and permits required for the establishment of the Bakery.
As a condition to accepting a proposed site to be leased or subleased, Developer must sign, and cause the lessor and/or sublessor of the proposed site, to sign the Collateral Assignment of Lease attached hereto as Exhibit B.
In addition, Developer acknowledges and agrees that Franchisor's acceptance of a proposed site may be conditioned upon Developer meeting certain other requirements (including, without limitation, the negotiation of additional terms and conditions satisfactory to Franchisor to any lease, sublease or purchase agreement for the proposed site), and if Developer does not, or is unable to meet such requirements within a reasonable time, the site will be deemed rejected.
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.
Within 10 days after Franchisor approves the proposed site, Developer must (a) sign and deliver to Franchisor two copies of Franchisor's then-current Franchise Agreement for the Bakery, together with any ancillary agreements required by the then-current Franchise Agreement and (b) pay Franchisor the applicable Franchise Fee as required therein but consistent with Section 5 above.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, after Cinnaholic provides written acceptance of a proposed site, the developer must promptly enter into the approved lease, sublease, or purchase agreement for the site. The developer is also responsible for obtaining all necessary zoning, building, and other governmental or regulatory approvals and permits required to establish the Cinnaholic bakery.
As a condition of accepting a site to be leased or subleased, Cinnaholic requires the developer to sign, and ensure that the lessor or sublessor also signs, the Collateral Assignment of Lease, which is included as Exhibit B in the FDD. Cinnaholic's acceptance of a proposed site may also be conditional upon the developer meeting certain other requirements, such as negotiating additional terms and conditions that are satisfactory to Cinnaholic in any lease, sublease, or purchase agreement. If the developer cannot meet these requirements within a reasonable time, Cinnaholic may deem the site rejected.
It is important to note that acquiring any proposed site before receiving written acceptance from Cinnaholic is at the developer's sole risk and responsibility. Cinnaholic's acceptance of a site, including any lease, sublease, or purchase agreement, does not guarantee the suitability of the site for a Cinnaholic bakery or the success of the business at that location. Within 10 days after Cinnaholic approves the proposed site, the developer must sign and deliver two copies of Cinnaholic's current Franchise Agreement, along with any required ancillary agreements, and pay the applicable franchise fee.