Does the Cinnaholic franchise agreement require a developer to waive reliance on any representation made by the franchisor in its most recent disclosure document?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer further acknowledges and understands that the estimated investment requirement and fees and expenses set forth in Franchisor's franchise disclosure document are subject to increase and change over time, and that future Bakeries developed hereunder will most likely require a greater initial investment and increased operating capital than those detailed in the franchise disclosure document provided to Developer in connection with the execution of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
Based on the 2025 Cinnaholic Franchise Disclosure Document, the franchise agreement does not explicitly require a developer to waive reliance on any representation made by Cinnaholic in its most recent disclosure document. However, the agreement includes provisions where the developer acknowledges certain aspects and assumes specific risks.
Specifically, the developer acknowledges that the estimated investment requirement, fees, and expenses in Cinnaholic's franchise disclosure document are subject to increase and change over time. The developer also understands that future bakeries developed under the agreement will likely require a greater initial investment and increased operating capital than those detailed in the franchise disclosure document provided during the agreement's execution.
This acknowledgement suggests that while Cinnaholic does not directly ask for a waiver of reliance, the developer is expected to understand and accept potential changes in financial requirements. A prospective franchisee should carefully consider these clauses and seek legal counsel to fully understand their implications regarding reliance on the FDD's representations.