What is the estimated range for additional funds needed for the first 3 months of operating a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Additional Funds – 3 months (See Note 12) | $15,000 to $30,000 | As Arranged | As Arranged | Suppliers, Employees |
- Note 12: This estimates the funds needed to cover your expenses during the first three months of operation.
These expenses include payroll costs (excluding any wage or salary paid to you), other miscellaneous expenses, and working capital.
These figures are estimates based on our past business experience.
We cannot guarantee that you will not have additional expenses starting your franchised business.
All of these expenses are paid to third parties.
- Note 13: The amount shown is based upon the experiences of our franchisees in 2023 and 2024.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees should anticipate needing between $15,000 and $30,000 in additional funds to cover the first three months of operation. These funds are intended to cover expenses such as payroll (excluding the franchisee's own wage or salary), other miscellaneous costs, and working capital. These figures are estimates based on Cinnaholic's past business experience.
It is important to note that Cinnaholic cannot guarantee that franchisees will not encounter additional expenses beyond this estimate when starting their franchised business. All of these expenses are paid to third parties, such as suppliers and employees. This estimate is based upon the experiences of Cinnaholic franchisees in 2023 and 2024.
Prospective franchisees should carefully consider this estimate and factor it into their financial planning. It is advisable to conduct thorough market research and develop a detailed business plan to accurately project expenses and ensure sufficient capital is available to sustain the business during its initial months. Given that these figures are estimates based on past performance, actual costs may vary depending on various factors, including location, market conditions, and individual business management practices.