Can the Cinnaholic Franchisor require a purchaser to enter into agreements with different or increased fees?

According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisor can increase fees over time. Specifically, the Development Agreement requires the developer to open a certain number of Cinnaholic bakeries according to a Development Schedule. The agreement states that the estimated investment requirement, fees, and expenses detailed in the Franchise Disclosure Document are subject to change and increase over time. Therefore, future Cinnaholic bakeries developed under the agreement will likely require a greater initial investment and increased operating capital than what is initially disclosed.

This means that while the initial franchise agreement outlines specific fees, these are not guaranteed to remain constant for future locations opened under a development agreement. A prospective franchisee needs to be aware that the costs associated with opening new Cinnaholic locations may rise due to market conditions, increased supply costs, or changes in the franchisor's requirements.

This clause protects Cinnaholic from being locked into outdated fee structures as their business model evolves or as external economic factors change. However, it places the risk of increased costs on the developer, who must be prepared to invest more capital than initially anticipated. It is important for a prospective franchisee to discuss with Cinnaholic what potential factors could influence these increases and how they can best prepare for them.