Does the Cinnaholic Franchise Agreement include a Development Schedule, Development Fee, and Payment Schedule as an exhibit?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ices are made by ground transportation. Subject to the foregoing maximum mileage restriction, Franchisee may provide catering and delivery services in the exclusive territories of other CINNAHOLIC® franchisees, and other CINNAHOLIC® franchisees may provide the same services in the Franchise Territory.
4. INITIAL FRANCHISE FEE
Upon the execution of this Agreement, Franchisee shall pay to Franchisor an Initial Franchise Fee in an amount set forth on Exhibit A (the "Franchise Fee"). In the event the Development Agreement requires the payment of a development fee by Franchisee to Franchisor, there shall be credited toward the payment of the Franchise Fee all or a portion of those development fees in the manner and to the extent provided for in the Development Agreement. Franchisee acknowledges and agrees that the Franchise Fee is paid as consideration for Franchisor granting Franchisee the right to develop, open and operate the Bakery using the Marks and the CINNAHOLIC® System and that the Franchise Fee is fully earned by Franchisor at the time this Agreement is executed, and the Franchise Fee shall not be refundable for any reason.
5. ROYALTY FEE; METHOD OF PAYMENT; LATE PAYMENT
- 5.1. Royalty Fee.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
The 2025 Cinnaholic Franchise Disclosure Document (FDD) indicates that the initial franchise fee is detailed in Exhibit A of the Franchise Agreement. Specifically, Section 4 of the agreement states that the franchisee will pay an initial franchise fee as outlined in Exhibit A. If a Development Agreement is in place requiring a development fee, this fee may be credited towards the initial franchise fee, as detailed in the Development Agreement.
The FDD also mentions a Market Development Agreement, which includes a Collateral Assignment of Lease that must be executed with any lease or sublease for the franchised site. This agreement contains obligations and conditions related to the lease, development, and construction of the Cinnaholic bakery.
However, the excerpts from the 2025 Cinnaholic FDD do not explicitly confirm whether a Development Schedule and Payment Schedule are included as exhibits. While the Development Agreement and its potential impact on the initial franchise fee are mentioned, the specific contents and exhibits of the Development Agreement are not detailed in these excerpts. To fully understand the terms, a prospective franchisee should review the complete Development Agreement and its exhibits, and should confirm with Cinnaholic whether a Development Schedule and Payment Schedule are included.