What costs is a Cinnaholic franchisee responsible for reimbursing Cinnaholic when Cinnaholic assigns personnel to train the franchisee's employees?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, Franchisor may, in its sole discretion, upon the request of Franchisee, furnish counseling and advisory services to Franchisee with respect to the opening and operation of the Bakery, including consultation and advice regarding the following: (i) equipment selection and layout; (ii) employee selection and training; (iii) advertising and promotion; (iv) recipes, food, formulas and specifications; (v) bookkeeping and accounting; (vi) purchasing and inventory control; (vii) operational problems and procedures; (viii) periodic inspections; and (ix) new developments and improvements to the CINNAHOLIC® System. These counseling and advisory services shall occur at Franchisor's offices or via telephone or e-mail. Franchisor shall provide such assistance at no expense to Franchisee; provided, however, Franchisor reserves the right, in its sole discretion, to charge Franchisee a reasonable fee for unusual, extensive or extraordinary assistance requested by Franchisee and/or require Franchisee to reimburse Franchisor for expenses incurred by it in connection with providing such counseling and advisory services. In addition, if requested by Franchisee and Franchisor's personnel are available, Franchisor may provide onsite assistance and training at the Bakery, however, Franchisor reserves the right to charge a reasonable fee for this onsite assistance plus expenses and costs incurred by Franchisor in rendering such assistance. In no event shall Franchisor be liable to Franchisee in connection with providing or failing to provide such services.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if a franchisee requests on-site assistance and training at their bakery and Cinnaholic's personnel are available, Cinnaholic reserves the right to charge a reasonable fee for this on-site assistance. In addition to the fee, the franchisee is responsible for reimbursing Cinnaholic for expenses and costs incurred while rendering such assistance.
This means that beyond the initial franchise fee and ongoing royalties, a Cinnaholic franchisee may incur additional costs for training if they require Cinnaholic to send personnel to their location. These costs can include not only a service fee charged by Cinnaholic but also cover the travel, lodging, and other expenses Cinnaholic incurs to provide the on-site support.
Prospective franchisees should consider these potential costs when budgeting for their Cinnaholic franchise. It is important to discuss with Cinnaholic what constitutes a 'reasonable fee' and what types of expenses are typically incurred for on-site assistance to accurately forecast potential training-related expenses. Understanding these costs upfront can help in making informed financial decisions and managing the overall investment in the franchise.