Does the Cinnaholic franchisor have control over the franchisee's hiring or firing decisions?
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.
13. OPENING ASSISTANCE
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
Based on the 2025 Cinnaholic Franchise Disclosure Document, Cinnaholic does not directly control a franchisee's hiring and firing decisions. However, Cinnaholic may provide counseling and advisory services to franchisees regarding employee selection and training.
The FDD states that Cinnaholic may furnish counseling and advisory services to the franchisee with respect to the opening and operation of the bakery, including consultation and advice regarding employee selection and training. This suggests that while Cinnaholic offers guidance, the franchisee ultimately makes the final decisions regarding hiring and firing.
While Cinnaholic does not directly dictate hiring and firing, franchisees and their employees must still comply with the standards, business practices, and policies of Cinnaholic, as outlined in the Operations Manual. Franchisees must also ensure their employees protect Cinnaholic's confidential information. Cinnaholic may also request that franchisees cause their management, supervisory employees, and other employees to whom disclosures of confidential information are made to execute a noncompetition, nonsolicitation, and/or nondisclosure agreement in the form(s) prescribed by Cinnaholic from time to time.