What is the Cinnaholic Development Fee for each bakery under a Development Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
e first Bakery franchised by you.
As discussed in Item 1 of this Disclosure Document, you must enter into a Development Agreement where you will commit to develop an agreed number of CINNAHOLIC® Bakeries consistent with the Development Schedule. When you sign the Development Agreement, you must pay us an upfront initial franchise fee of $40,000 for each Bakery that you agree to develop under the Development Agreement (the "Development Fee"), with the minimum number of bakeries being one. The Development Fee is payable in one lump sum when you sign the Development Agreement. If a Bakery is developed in accordance with the Development Schedule, the Development Fee attributable to that Bakery will be credited towards the payment of the initial franchise fee due under the Franchise Agreement. If a Bakery is not established in accordance with the Development Schedule, the Development Fee that would have otherwise been credited towards payment of the initial franchise fee for that Bakery will be forfeited and retained by us. If you and we are unable to agree upon a site for a Bakery and, as a result, you fail to meet your Development Schedule, we may terminate your Development Agreement. If, for any reason, the Development Agreement terminates before all or a portion of the Development Fee has been applied to the initial franchise fees, we will retain the unapplied portion of the Development Fee to compensate us for our time, effort and lost opportunities. The Development Fee is uniform for all franchisees purchasing through this Disclosure Document. We have no intention, now or in the future, of reducing the Development Fee for any prospective Franchisee, although we reserve the right to do so in our sole discretion on a case-by-case basis. The Development Fee is not
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if you enter into a Development Agreement, you must pay a Development Fee of $40,000 for each bakery you commit to develop. This fee is paid as a lump sum when you sign the Development Agreement, and the agreement must cover at least one bakery.
If you develop a bakery according to the agreed-upon Development Schedule, the $40,000 Development Fee will be credited toward the initial franchise fee due under the Franchise Agreement. However, if you fail to establish a bakery according to the Development Schedule, Cinnaholic will retain the Development Fee for that bakery. If you and Cinnaholic cannot agree on a site, potentially causing you to miss your Development Schedule, Cinnaholic may terminate the Development Agreement.
Furthermore, if the Development Agreement terminates before the Development Fee is fully applied to initial franchise fees, Cinnaholic will keep the unapplied portion to compensate for their time, effort, and lost opportunities. The Development Fee is uniformly applied to all franchisees purchasing through the 2025 Disclosure Document, and Cinnaholic states they have no intention of reducing it, although they reserve the right to do so on a case-by-case basis. It is important to note that the Development Fee is not refundable under any circumstances.