For Cinnaholic franchises in Illinois, when is the payment of the initial franchise/development fees due?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| 7. No statement, questionnaire, or acknowledgment any applicable state franchise law, including fraud statement made by any franchisor, NASAA STATEMENT OF POLICY REGARDING AND ACKNOWLEDGMENTS. questionnaires.pdf | signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under in the inducement, or (ii) disclaiming reliance on any franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise. See THE USE OF FRANCHISE QUESTIONNAIRES https://www.nasaa.org/wp-content/uploads/2022/11/sop-franchise | |
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| 8. | To the extent this Addendum is inconsistent with any terms or conditions of the Agreement or the | |
| Exhibits or Schedules thereto, the terms of this Addendum shall govern. | ||
| , 20 | Each of the undersigned hereby acknowledges having read, understood, and executed this Addendum on | |
| FRANCHISOR: | DEVELOPER: | |
| CINNAHOLIC FRANCHISING, LLC | If an Individual: | |
| By: | Signature: | |
| Print Name: | Print Name: | |
| Title: | If other than an Individual: | |
| By: Name: Title: | # CINNAHOLIC FRANCHISING, LLC ADDENDUM TO MARKET DEVELOPMENT AGREEMENT |
(Illinois)
The following Addendum modifies and supersedes the Cinnaholic Franchising, LLC Market Development Agreement (the "Agreement") with respect to CINNAHOLIC franchises offered or sold to either a resident of the State of Illinois or a non-resident who will be operating a CINNAHOLIC franchise in the State of Illinois pursuant to the Illinois Franchise Disclosure Act of 1987, Ill. Comp. Stat. §§ 705/1 through 705/44, as follows:
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- Illinois law governs the Franchise Agreement(s).
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Illinois franchisees benefit from a specific addendum that modifies the standard Market Development Agreement. Due to Cinnaholic's financial condition, the Office of the Illinois Attorney General requires that the payment of initial franchise and development fees be deferred.
Specifically, these fees are not due until Cinnaholic has fulfilled its initial obligations to the franchisee. This means Cinnaholic must complete all the pre-opening support and training outlined in the franchise agreement before the franchisee is required to pay the initial fees.
Furthermore, the payment is contingent upon the franchisee commencing business operations. In practical terms, an Illinois Cinnaholic franchisee will not be required to pay the initial franchise fees until their store is ready to open and they have started serving customers. This provides a significant financial assurance to the franchisee, reducing their upfront investment risk and ensuring that Cinnaholic is incentivized to provide the necessary support to get the business operational.