Who bears the risk of acquiring a site before written acceptance by Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
The acquisition in any manner of any proposed site, whether by option, purchase, lease or otherwise, before written acceptance by Franchisor shall be at the sole risk and responsibility of Developer and shall not obligate Franchisor in any way to accept such site or enter into a Franchise Agreement with Developer for the operation of a CINNAHOLIC® Bakery at such site.
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.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the developer bears the risk of acquiring a site before written acceptance by Cinnaholic. Specifically, if a developer chooses to obtain a site, whether by option, purchase, lease, or other means, before Cinnaholic provides written acceptance, the developer assumes sole responsibility for any associated risks.
This disclaimer protects Cinnaholic from any obligation to accept a site that a developer has acquired prematurely. It also ensures that Cinnaholic is not obligated to enter into a franchise agreement for a Cinnaholic bakery at such a site. The FDD emphasizes that site acceptance by Cinnaholic does not guarantee the site's suitability or the bakery's success.
For a prospective Cinnaholic franchisee, this means that securing a location before receiving written approval from Cinnaholic carries significant risk. If the site is ultimately rejected, the franchisee could lose any investments made in acquiring or optioning the site. Therefore, it is crucial to follow Cinnaholic's site selection process and obtain written acceptance before making any financial commitments to a specific location.