What happens if a Cinnaholic franchisee fails to obtain the highest bakery classification from governmental authorities?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall operate and maintain the Bakery in a manner which will ensure that the Bakery will obtain the highest classification possible for bakeries of like kind from the governmental authorities that inspect bakeries in the area where the Bakery is operated. If Franchisee is not able to obtain such classification, or if Franchisee fails to operate in accordance with the general standards of quality, maintenance, repairs and sanitation required by Franchisor, then Franchisor may, at its option, place such trained personnel in the Bakery as Franchisor deems necessary to train the managerial and operating personnel of the Bakery until the Bakery can obtain the highest classification or meet such general standards. Franchisor's personnel shall remain at the Bakery until the required classification is obtained or until Franchisor, in its sole discretion, decides to remove them. Franchisee shall pay all costs associated with providing such personnel, including costs of transportation, meals, lodging, wages or other compensation, including fringe benefits.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are required to operate and maintain their bakeries to achieve the highest possible classification from local governmental authorities. If a franchisee fails to obtain this classification or does not meet Cinnaholic's general standards for quality, maintenance, repairs, and sanitation, Cinnaholic has the option to intervene.
Specifically, Cinnaholic may send trained personnel to the bakery to train the managerial and operating staff. These personnel will remain at the bakery until the required classification is achieved or until Cinnaholic decides to remove them at their sole discretion.
The franchisee is responsible for covering all costs associated with Cinnaholic's personnel being present at the bakery. These costs include transportation, meals, lodging, wages, other compensation, and fringe benefits. This could represent a significant financial burden for the franchisee, especially if the training period is extended.