What happens if a Cinnaholic franchisee fails to pay a fine within the specified timeframe?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
. Upon the expiration or termination of this Agreement for any reason, Franchisee must return all copies of the Operations Manual to Franchisor, and upon Franchisor's request, certify to Franchisor that Franchisee has not kept any copies in any medium. The Operations Manual is confidential, copyrighted and Franchisor's exclusive property.
Franchisor may impose fines for Franchisee's failure to comply with the Operations Manual. Before any fine may be imposed, Franchisor must first have given Franchisee one written notice of the non-compliance with the Operations Manual; thereafter, any further non-compliance with that specific provision of the Operations Manual shall allow the imposition of a fine. Fines shall be in the amount of $100 to $1000, per violation, per day, as determined in Franchisor's sole discretion. However, Franchisor may elect to provide guidance in the Operations Manual regarding the amount of fines it may levy for given acts of noncompliance.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees may be subject to fines for non-compliance with the Operations Manual. Cinnaholic will provide one written notice of non-compliance, and any further non-compliance with that specific provision allows Cinnaholic to impose a fine. These fines range from $100 to $1,000 per violation, per day, determined at Cinnaholic's discretion.
A Cinnaholic franchisee must pay any levied fines within ten days of receiving written notice from Cinnaholic. If a franchisee fails to pay the fine within this ten-day period, Cinnaholic is authorized to perform an electronic funds transfer from the franchisee's bank account to cover the amount of the fine.
Furthermore, the 2025 FDD states that failure to pay any fine within the ten-day timeframe constitutes a material default under the Franchise Agreement. This could potentially lead to further actions or penalties as outlined in the agreement.