What is the Cinnaholic franchisee required to reimburse the Franchisor for regarding training personnel?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, Franchisor may, in its sole discretion, upon the request of Franchisee, furnish counseling and advisory services to Franchisee with respect to the opening and operation of the Bakery, including consultation and advice regarding the following: (i) equipment selection and layout; (ii) employee selection and training; (iii) advertising and promotion; (iv) recipes, food, formulas and specifications; (v) bookkeeping and accounting; (vi) purchasing and inventory control; (vii) operational problems and procedures; (viii) periodic inspections; and (ix) new developments and improvements to the CINNAHOLIC® System. These counseling and advisory services shall occur at Franchisor's offices or via telephone or e-mail. Franchisor shall provide such assistance at no expense to Franchisee; provided, however, Franchisor reserves the right, in its sole discretion, to charge Franchisee a reasonable fee for unusual, extensive or extraordinary assistance requested by Franchisee and/or require Franchisee to reimburse Franchisor for expenses incurred by it in connection with providing such counseling and advisory services. In addition, if requested by Franchisee and Franchisor's personnel are available, Franchisor may provide onsite assistance and training at the Bakery, however, Franchisor reserves the right to charge a reasonable fee for this onsite assistance plus expenses and costs incurred by Franchisor in rendering such assistance. In no event shall Franchisor be liable to Franchisee in connection with providing or failing to provide such services.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, a franchisee may be required to reimburse Cinnaholic for expenses incurred by them when providing counseling and advisory services. This includes situations where the franchisee requests unusual, extensive, or extraordinary assistance.
Specifically, if the franchisee requests on-site assistance and training at their bakery and Cinnaholic's personnel are available, Cinnaholic may charge a reasonable fee for this on-site assistance. In addition to the fee, the franchisee is responsible for reimbursing Cinnaholic for all expenses and costs incurred while rendering such assistance.
This means that while Cinnaholic offers counseling and advisory services, including those related to employee selection and training, the franchisee should be prepared to cover the costs associated with more involved, hands-on support provided at their location. This is a fairly standard practice in franchising, where franchisors often provide initial training and support but may charge for additional or on-site assistance.