What are the consequences for late payments or insufficient funds under the Cinnaholic franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
NSF checks are governed by Minnesota Statute 604.113, which puts a cap of $30 on service charges.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Minnesota Statute 604.113 caps service charges for NSF checks at $30. This means that if a Cinnaholic franchisee in Minnesota has a check returned for insufficient funds, the maximum fee Cinnaholic can charge is $30.
This specific regulation applies only to Cinnaholic franchises operating in Minnesota. Franchisees in other states will need to refer to their local laws and the specific terms outlined in their franchise agreement to understand the penalties for NSF checks. It is important for prospective franchisees to be aware of these potential fees and to manage their finances carefully to avoid incurring them.
While the FDD excerpt specifies the NSF check fee limit in Minnesota, it does not detail the consequences for late payments of royalties or other fees. A prospective Cinnaholic franchisee should carefully review the section of the Franchise Agreement that discusses royalty payments and late payment penalties to fully understand their obligations and the potential financial repercussions of late payments or insufficient funds.