What is the Cinnaholic franchisee confirming about their understanding of the exhibits and schedules by completing the questionnaire?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
al: By: Name: Title: 18. Advisory Regarding Franchise Brokers. Under the Washington Franchise Investment Protection Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or
EXHIBIT I
FRANCHISEE DISCLOSURE QUESTIONNAIRE [SEE ATTACHED]
FRANCHISEE DISCLOSURE QUESTIONNAIRE
As you know, Cinnaholic Franchising, LLC ("we", "us" or "our") and you are preparing to enter into a Development Agreement and Franchise Agreement for the operation of a CINNAHOLIC® franchise. The purpose of this Questionnaire is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, to be certain that you have been properly represented in this transaction, and to be certain that you understand the limitations on claims you may make by reason of the purchase and operation of your franchise. You cannot sign or date this Questionnaire the same day as the Receipt for the Franchise Disclosure Document but you must sign and date it the same day you sign the Development Agreement and/or Franchise Agreement and pay your development and/or franchise fee. Please review each of the following questions carefully and provide honest responses to each question. If you answer "No" to any of the questions below, please explain your answer on the back of this sheet.
| Yes | No | l. | Have you received and personally reviewed the Development Agreement, the Franchise Agreement and each exhibit and schedule attached to them? | |-----|----|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Yes | No | 2. | Have | | | | | you | | | | | received | | | | | and | | | | | personally | | | | | reviewed | | | | | the | | | | | Franchise | | | | | Disclosure | | | | | Document | | | | | ("Disclosure Document") we provided? | | Yes | No | 3. | Did | | | | | you | | | | | sign | | | | | a | | | | | receipt | | | | | for | | | | | the | | | | | Disclosure | | | | | Document | | | | | indicating | | | | | the | | | | | date | | | | | you | | | | | received it? | | Yes | No | 4. | Do you understand all the information contained in the Disclosure Document, the | | | | | Development Agreement and the Franchise Agreement? | | Yes | No | 5. | Have | | | | | you | | | | | reviewed | | | | | the | | | | | Disclosure | | | | | Document, | | | | | the | | | | | Development | | | | | Agreement | | | | | and | | | | | the | | | | | Franchise Agreement with a lawyer, accountant or other professional advisor? | | Yes | No | 6. | Have | | | | | you | | | | | discussed | | | | | the | | | | | benefits | | | | | and | | | | | risks | | | | | of | | | | | developing | | | | | and | | | | | operating | | | | | a | | | | | CINNAHOLIC® franchise with an existing CINNAHOLIC® franchisee? | | Yes | No | 7. | CINNAHOLIC® | | | | | Do | | | | | you | | | | | understand | | | | | the | | | | | risks | | | | | of | | | | | developing | | | | | and | | | | | operating | | | | | a | | | | | franchise? | | Yes | No | 8. | Do | | | | | you | | | | | understand | | | | | the | | | | | success | | | | | or | | | | | failure | | | | | of | | | | | your | | | | | franchise | | | | | will | | | | | depend | | | | | in | | | | | large | | | | | part upon your skills, abilities and efforts and those of the persons you employ, as | | | | | well | | | | | as | | | | | many | | | | | factors | | | | | beyond | | | | | your | | | | | control | | | | | such | | | | | as | | | | | weather, | | | | | competition, | | | | | interest | | | | | rates, the economy, inflation, labor and supply costs, lease terms and the | | | | | marketplace? | | Yes | No | 9. | Do | | | | | you | | | | | understand | | | | | we | | | | | have | | | | | only | | | | | granted | | | | | you | | | | | a | | | | | limited | | | | | territorial | | | | | protection | | | | | against | | | | | us | | | | | locating | | | | | another | | | | | CINNAHOLIC | | | | | bakery | | | | | near | | | | | your | | | | | Bakery(ies) | | | | | as | | | | | stated | | | | | in your Franchise Agreement and that another CINNAHOLIC® franchise or | | | | | company-owned Bakery may open anywhere outside your limited protected | | | | | territory? | | Yes | No | 10. | Do | | | | | you | | | | | understand | | | | | we | | | | | and | | | | | our | | | | | affiliates | | | | | retain | | | | | the | | | | | exclusive | | | | | unrestricted | | | | | right | | | | | to | | | | | engage, | | | | | directly | | | | | or | | | | | through | | | | | others, | | | | | in | | | | | the | | | | | production, distribution and sale | | | | | of food | | | | | products | | | | | and | | | | | other | | | | | products | | | | | under | | | | | the | | | | | CINNAHOLIC® name | | | | | or | | | | | other | | | | | mark, | | | | | at | | | | | any | | | | | location, | | | | | other | | | | | than | | | | | a | | | | | CINNAHOLIC® Bakery | | | | | within | | | | | your | | | | | limited | | | | | protected | your CINNAHOLIC® Bakery(ies) and adversely affect its sales? Yes__ No__ 11.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the Franchisee Disclosure Questionnaire is designed to confirm that the prospective franchisee understands the agreements they are entering into. By completing the questionnaire, the franchisee confirms that no unauthorized statements or promises have been made to them, that they have been properly represented in the transaction, and that they understand the limitations on claims they can make regarding the franchise.
The questionnaire includes a series of questions about whether the franchisee has received and reviewed the Development Agreement, Franchise Agreement, and the Franchise Disclosure Document itself. It also addresses whether the franchisee understands the information contained in these documents, and if they have reviewed them with a professional advisor. The questionnaire further seeks to confirm the franchisee's understanding of the risks involved in operating a Cinnaholic franchise, the limited territorial protection offered, and Cinnaholic's rights to engage in other distribution methods.
Specifically, the franchisee confirms their understanding that their success depends largely on their own skills and efforts, as well as factors beyond their control. They also acknowledge that any disputes will likely be litigated or arbitrated near Cinnaholic's principal executive office. The franchisee also confirms that no employee of Cinnaholic has made any statements or promises about costs, profits, or support that are not included in the Disclosure Document. This process ensures that the franchisee is making an informed decision and is not relying on any misleading or unauthorized information.