Does the Cinnaholic Franchisee Disclosure Questionnaire ask if the franchisee understands the risks of developing and operating a franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Exhibit I is the Franchisee Disclosure Questionnaire. The purpose of this questionnaire is to ensure that prospective franchisees have not received any unauthorized or misleading statements, have been properly represented, and understand the limitations on claims related to the franchise. The questionnaire is a crucial step in the franchising process, as it requires franchisees to acknowledge their understanding of various aspects of the franchise agreement.
The Cinnaholic Franchisee Disclosure Questionnaire includes questions to confirm the franchisee's understanding of key obligations and potential risks. For example, franchisees must confirm they understand the limited protected territory, the required initial training, and the designated venues for dispute litigation or arbitration. They must also acknowledge that no employee made any unauthorized statements regarding costs, profits, or earnings that are not contained in the Disclosure Document.
By requiring franchisees to complete this questionnaire, Cinnaholic aims to ensure that franchisees are fully informed and aware of the terms and conditions of the franchise agreement. This process helps to minimize misunderstandings and potential disputes between the franchisor and franchisee, fostering a more transparent and mutually beneficial relationship. The questionnaire must be signed and dated the same day the Development Agreement and/or Franchise Agreement is signed and the development and/or franchise fee is paid, but not the same day as the Receipt for the Franchise Disclosure Document.