Does the Cinnaholic Franchisee Disclosure Questionnaire require acknowledgement of signing a receipt for the Franchise Disclosure Document?
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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the Franchisee Disclosure Questionnaire is designed to ensure that prospective franchisees understand the terms of the franchise agreement and that no unauthorized promises have been made. The questionnaire includes a specific instruction regarding its timing relative to the Franchise Disclosure Document (FDD) receipt.
Specifically, the FDD states that a franchisee cannot sign the Franchisee Disclosure Questionnaire on the same day as signing the Receipt for the Franchise Disclosure Document. This suggests that Cinnaholic wants to ensure franchisees have adequate time to review the FDD before completing the questionnaire. The questionnaire must be signed and dated on the same day the franchisee signs the Development Agreement and/or Franchise Agreement and pays their development and/or franchise fee.
This requirement ensures that franchisees have had a chance to fully consider the FDD before moving forward with the franchise agreement. By separating the signing of the questionnaire from the FDD receipt, Cinnaholic aims to prevent franchisees from feeling rushed or pressured into making a decision without proper review. This practice aligns with franchise regulations that emphasize informed consent and due diligence on the part of the franchisee.