What is the 'Development Schedule' in the context of a Cinnaholic Development Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
You must enter into a Market Development Agreement, the current form of which is attached to this Disclosure Document as Exhibit B (the "Development Agreement"). Under the Development Agreement, you must develop, open and operate an agreed upon number of Bakeries located in an area of responsibility (the "Area of Responsibility") in accordance with an agreed upon development schedule (the "Development Schedule"). You must enter into a Development Agreement even if you will establish only one Bakery. There is no preset minimum or maximum number of Bakeries that you may agree to establish in connection with a Development Agreement. The number of Bakeries to be developed is negotiated between you and us on a case-by-case basis. The Development Agreement will expire on the day after operations of the final Bakery to be established under the Development Agreement are required to begin as provided on the Development Schedule. The Development Agreement will not grant any protected territory, exclusivity or other rights in which to establish your Bakeries in the Area of Responsibility. You may establish your Bakeries at any location within the Area of Responsibility provided we consent to the location, which may be withheld or granted in our sole discretion, the location is in a state where we are permitted to sell CINNAHOLIC® franchises, and the Bakery is not located in the franchise territory granted to another CINNAHOLIC® franchisee. Within our sole discretion, we may consider a location proposed by you outside your Area of Responsibility.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a Development Schedule is a component of the Market Development Agreement. This agreement requires franchisees to develop, open, and operate a specific number of Cinnaholic bakeries within a defined Area of Responsibility, according to the agreed-upon Development Schedule.
The Development Agreement is mandatory, even if the franchisee intends to open only one bakery. The number of bakeries to be developed is determined through negotiations between Cinnaholic and the franchisee. The Development Agreement's term concludes the day after the final bakery's operations are scheduled to begin, as outlined in the Development Schedule.
It's important to note that the Development Agreement does not grant any exclusive territory or protected rights for establishing Cinnaholic bakeries within the Area of Responsibility. Franchisees can open bakeries at any location within their designated area, subject to Cinnaholic's approval, compliance with state franchise regulations, and provided the location isn't within another franchisee's protected territory. Cinnaholic retains the discretion to consider locations proposed by the franchisee outside of their Area of Responsibility.
Each Cinnaholic bakery developed under the Development Agreement will operate under a separate Franchise Agreement. Upon opening each additional location, the developer might need to sign the then-current Franchise Agreement, which could differ from the one included in the FDD. This Franchise Agreement grants a protected territory, the size and scope of which is determined on a case-by-case basis.