Does the Cinnaholic franchise agreement specify a royalty fee?

Yes, according to the 2025 Cinnaholic Franchise Disclosure Document, the franchise agreement does address royalty fees. Specifically, Section 5 of the franchise agreement is titled "ROYALTY FEE; METHOD OF PAYMENT; LATE PAYMENT". This indicates that the franchise agreement will contain information regarding the royalty fee, how it is to be paid, and what happens if payment is late.

Prospective Cinnaholic franchisees should carefully review Section 5 of the franchise agreement to fully understand their obligations regarding royalty payments. This includes understanding the amount of the royalty fee, when it is due, how it is to be paid, and what the consequences are for late payment. Franchisees should also understand how the royalty fee may change over time, as indicated in the excerpt discussing renewal agreements.

Understanding the details of royalty fees is crucial for franchisees as it directly impacts their profitability and cash flow. Failing to meet royalty payment obligations can lead to penalties or even termination of the franchise agreement. Therefore, a clear understanding of these terms is essential before entering into a franchise agreement with Cinnaholic.