Who bears the expense of maintaining the Cinnaholic Bakery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ise in writing. Franchisee understands that its participation in these programs is essential to its success and that its participation may entail some cost to Franchisee. Franchisee agrees that Franchisor has no obligation to reimburse Franchisee for any costs it incurs due to its mandatory participation in these special promotional programs.
- (xvii) Without limiting any of Franchisee's other obligations under this Agreement, at the request of Franchisor, but not more often than once every 5 years, unless sooner required by Franchisee's lease, Franchisee shall refurbish the premises of the Bakery at its expense, to conform to the Bakery, trade dress, color schemes and presentation of the Marks in a manner consistent with the thencurrent image for new Bakeries ("Refurbishments"). Refurbishments may include structural changes, installation of new equipment and signs, remodeling, redecoration and modifications to existing improvements. Refurbishments are intended to be large-scale re-equipping, refurbishing and remodeling of the Bakery, and nothing contained in this Subsection (xvii) of this Agreement will limit Franchisee's other obligations under this Agreement or the Operations Manual.
- (xviii) Become a member of any purchasing and/or distribution cooperative(s)/association(s)/program(s) designated by Franchisor and/or established by Franchisor for the CINNAHOLIC® System, remain a member in good standing thereof throughout the term of this Agreement and pay all membership fees or fees on purchases that are assessed by such purchasing and/or distribution cooperative(s)/association(s)/program(s).
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisee is primarily responsible for the expenses related to maintaining the Cinnaholic Bakery. This includes the cost of refurbishing the premises, which Cinnaholic may request, but not more often than once every 5 years, unless the franchisee's lease requires it sooner. These refurbishments are at the franchisee's expense and must conform to Cinnaholic's current image for new bakeries, potentially involving structural changes, new equipment, remodeling, and redecoration.
Additionally, the franchisee is responsible for paying all taxes related to the bakery's operation, such as state employment tax and state sales tax. They must also maintain contracts with third-party service providers for customer service, shopper experience, or food safety programs as required by Cinnaholic, bearing the cost of these services. The franchisee is also expected to promptly address any maintenance issues to uphold the quality and standards of the Cinnaholic brand.
Furthermore, upon termination or expiration of the franchise agreement, the franchisee is obligated, at their own expense, to make modifications to the bakery's exterior and interior to remove any identification as a Cinnaholic Bakery. This ensures that the location no longer appears to be associated with the Cinnaholic brand, and helps to enforce the non-compete provisions of the franchise agreement.