What credit rating must a purchaser have to be approved for a Cinnaholic transfer?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's approval of any Transfer is, in all cases, contingent upon the following:
- (i) the purchaser and/or the controlling persons of the purchaser having a satisfactory credit rating, being of good moral character, having business qualifications satisfactory to Franchisor, and being willing to enter into an agreement in writing to assume and perform all of Developer's duties and obligations hereunder and/or enter into a new Market Development Agreement for the Area of Responsibility, if so requested by Franchisor, and agreeing to enter into any and all agreements with Franchisor that are being required of all new market developers, including a guaranty agreement and any other agreement which may require payment of different or increased fees from those paid under this Agreement;
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisor's approval of any transfer is contingent upon the purchaser having a satisfactory credit rating. The FDD does not specify a minimum credit score or a particular credit rating agency that Cinnaholic uses to determine what is considered satisfactory.
In addition to a satisfactory credit rating, the purchaser and/or the controlling persons of the purchaser must be of good moral character and have business qualifications satisfactory to Cinnaholic. They must also be willing to enter into an agreement in writing to assume and perform all of the developer's duties and obligations. This may also include entering into a new Market Development Agreement for the Area of Responsibility, if requested by Cinnaholic, and agreeing to enter into any and all agreements with Cinnaholic that are being required of all new market developers, including a guaranty agreement and any other agreement which may require payment of different or increased fees.
Prospective franchisees should inquire with Cinnaholic directly to understand the specific credit rating criteria they use during the transfer approval process. Understanding these requirements is crucial for anyone considering purchasing an existing Cinnaholic franchise to ensure they meet the necessary qualifications.