Does the Cinnaholic franchise agreement outline initial training requirements?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
hisor is willing to grant Franchisee the right to operate a CINNAHOLIC® Bakery, all subject to the terms and conditions hereinafter set forth.
NOW, THEREFORE, for and in consideration of the covenants and agreements hereinafter set forth, it is mutually understood, agreed and covenanted as follows:
1. GRANT OF FRANCHISE
During the term of this Agreement, Franchisor hereby grants to Franchisee the non-exclusive right and license, and Franchisee undertakes the obligation, to develop and operate a CINNAHOLIC® Bakery and to use solely in connection therewith, the Marks and the CINNAHOLIC® System in accordance with the terms and conditions of this Agreement only at the Franchised Site, assuch term is hereinafter defined. Franchisee agrees to use the Marks and CINNAHOLIC® System, as they are changed, improved and further developed by Franchisor from time to time. Unless otherwise agreed to by Franchisor, Franchisee has 12 months from the Effective Date to complete the initial training as required by Section 14.1 and to commence operation of the Bakery. Franchisee must obtain Franchisor's written approval before commencing operation of the Bakery.
2. TERM AND RENEWAL
- 2.1. Initial Term. Unless terminated earlier in accordance with the terms and conditions set forth herein, this Agreement and the franchise granted hereunder shall have an initial term of 10 years commencing as of the Effective Date (the "Initial Term").
- 2.2. Renewal. Upon the expiration of the Initial Term, Franchisee shall have the right to renew the franchise granted hereunder for an additional 10 year period provided that all of the following conditions are met:
- (i) Franchisee gives Franchisor written notice of its election to renew the franchise not less than six months before the expiration of the Initial Term;
- (ii) Franchisee is not, when notice is given, and does not become before the expiration of the Initial Term, in default of any provision of this Agreement or any other agreement between Franchisee and Franchisor or its subsidiaries or affiliates or with any other creditor or supplier of the Bakery or lessor or sublessor of the Franchised Site, and Franchisee shall have fully and faithfully performed all of its obligations under this Agreement and all such other agreements throughout their terms;
- (iii) Franchisee shall execute, at Franchisor's option, Franchisor's then-current form of Franchise Agreement, which Franchise Agreement shall supersede in all respects the terms and conditions of this Agreement and may contain terms and conditions substantially different from those set forth herein, including, without limitation, an increase in Royalty Fees or Advertising Fees (as such terms are hereinafter defined); provided, however, the renewal Franchise Agreement shall not provide for any additional renewal rights;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, franchisees are required to complete initial training as outlined in Section 14.1 of the franchise agreement. Unless Cinnaholic agrees otherwise, franchisees have 12 months from the effective date of the agreement to complete this initial training and begin operating their bakery. Before commencing operations, franchisees must obtain written approval from Cinnaholic. This indicates that initial training is a mandatory step before a Cinnaholic franchise can open for business.
Beyond the initial training for franchisees, Cinnaholic also requires franchisees to implement a training program for their employees, which must be approved by Cinnaholic. Franchisees are responsible for ensuring their employees are properly trained and are prohibited from employing individuals who fail to complete the training program or are unqualified to perform their duties according to Cinnaholic's standards.
Cinnaholic also mandates additional training programs for franchisees, their managers, and employees, as deemed reasonably necessary by Cinnaholic. Franchisees may also be required to purchase training films or other instructional materials as specified in the Operations Manual. Furthermore, Cinnaholic may require franchisees and/or their operating managers to attend conferences, for which the franchisee is responsible for covering travel and living expenses, and Cinnaholic may charge a reasonable fee to cover the costs of these conferences. All participants in Cinnaholic's training programs must adhere to professional standards of conduct and satisfy any prerequisites outlined in the Operations Manual.