Where can I find information about Cinnaholic's development fee?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the execution of this Agreement, Developer shall pay to Franchisor a development fee in an amount set forth on Exhibit A (the "Development Fee"). Developer acknowledges and agrees that the Development Fee is paid as consideration for Franchisor granting Developer the right to establish, open and operate the number of CINNAHOLIC® Bakeries set forth on the Development Schedule, and that the Development Fee is fully earned by Franchisor at the time this Agreement is signed and shall not be refundable for any reason. The Development Fee shall equal the total of all initial franchise fees (the "Franchise Fees") due under each of the Franchise Agreements covering the cumulative number of CINNAHOLIC® Bakeries to be developed hereunder. Provided that a Bakery is established in accordance with the Development Schedule, that portion of the Development Fee applicable to the Franchise Fee due under the Franchise Agreement for such Bakery shall be credited towards the payment of such Franchise Fee. In the event a Bakery is not established in accordance with the Development Schedule, that portion of the Development Fee that would have otherwise been credited towards the payment of the Franchise Fee shall be forfeited and retained by Franchisor. If for any reason this Agreement terminates before all or a portion of the Development Fee has been applied to the Franchise Fees, Franchisor will retain the unapplied portion of the Development Fee to compensate itself for its time, effort and foregone opportunities.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, details regarding the development fee can be found in Exhibit A. Upon signing the Development Agreement, the developer is required to pay Cinnaholic a development fee, the amount of which is specified in Exhibit A. This fee compensates Cinnaholic for granting the developer the right to establish and operate a set number of Cinnaholic bakeries as outlined in the Development Schedule. The document specifies that the development fee is considered fully earned by Cinnaholic upon signing the agreement and is non-refundable.
The development fee is equivalent to the total of all initial franchise fees due for each Cinnaholic bakery under the respective Franchise Agreements. If a bakery is established according to the Development Schedule, the portion of the development fee that applies to the franchise fee for that bakery can be credited towards the payment of said franchise fee. However, if a bakery is not established as per the Development Schedule, the corresponding portion of the development fee will be forfeited and retained by Cinnaholic.
Furthermore, if the Development Agreement terminates before the entire development fee has been applied to the franchise fees, Cinnaholic will retain the unapplied portion. This retention serves as compensation for Cinnaholic's time, effort, and lost opportunities. Therefore, Exhibit A of the Development Agreement is the key location for a prospective franchisee to find the specific amount of the development fee required by Cinnaholic.