Does Cinnaholic charge franchisees for the initial opening assistance personnel?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Before opening the Bakery, Franchisee shall comply with (i) all of Franchisor's pre-opening, development, construction and training requirements and checklists, and (ii) all other opening requirements set forth in this Agreement, the Operations Manual and/or elsewhere in writing by Franchisor ("Opening Requirements"). Upon satisfactory completion of the Opening Requirements, Franchisor shall provide Franchisee with an opening person(s) to assist in the opening of the Bakery and the training of Franchisee's employees. The opening person(s) will remain at the Bakery for such length of time as Franchisor shall deem necessary. Franchisor shall provide any opening person(s) at no charge to Franchisee; provided, however, Franchisor reserves the right, in its sole discretion, to charge Franchisee for extraordinary travel and living expenses incurred by any opening person(s) in connection with providing opening assistance. In the event Franchisee needs and requests additional opening assistance from Franchisor's personnel, and Franchisor approves that request, Franchisee will pay all costs and expenses of such personnel, for as long as any such additional personnel assist at the Bakery. The costs and expenses associated with this assistance include, but are not limited to, wages, salary, transportation, meals, lodging and fringe benefits. All personnel provided under this Section shall be selected by Franchisor and is subject to change or removal by Franchisor in its sole discretion. Franchisee must obtain written approval by Franchisor before opening the Bakery. Franchisor shall have no obligation to approve the opening of the Bakery if (a) Franchisee has not satisfied, as determined by Franchisor, all the Opening Requirements and other requirements under this Agreement, or (b) Franchisee or any of its affiliates are in default under any agreement with Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic provides opening personnel to assist with the bakery's opening and employee training at no charge to the franchisee. These personnel will remain at the bakery for a duration deemed necessary by Cinnaholic. However, Cinnaholic reserves the right to charge the franchisee for extraordinary travel and living expenses incurred by the opening personnel during this assistance period.
If the franchisee requires and requests additional opening assistance from Cinnaholic's personnel, and Cinnaholic approves this request, the franchisee is responsible for covering all costs and expenses associated with the additional personnel. These costs encompass wages, salary, transportation, meals, lodging, and fringe benefits for as long as the additional personnel are assisting at the bakery. Cinnaholic retains the authority to select, change, or remove any personnel provided under this section at its discretion.
In order to open, the franchisee must obtain written approval from Cinnaholic. Cinnaholic has no obligation to approve the opening if the franchisee has not met all opening requirements or is in default under any agreement with Cinnaholic or its affiliates. This means that while the initial opening assistance is provided without direct personnel fees, franchisees should be prepared for potential expenses related to travel, lodging, and additional support if needed.