What happens after Cinnaholic receives the signed Franchise Agreement, Franchise Fee, and all ancillary items in satisfactory form?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Within 10 days after Franchisor approves the proposed site, Developer must (a) sign and deliver to Franchisor two copies of Franchisor's then-current Franchise Agreement for the Bakery, together with any ancillary agreements required by the then-current Franchise Agreement and (b) pay Franchisor the applicable Franchise Fee as required therein but consistent with Section 5 above. Once Franchisor has received the signed Franchise Agreement, the Franchise Fee and all ancillary items it requires in satisfactory form, Franchisor will countersign the Franchise Agreement and return one fully signed copy to Developer. Developer understands that any obligation or liability Developer incurs with respect to the proposed Bakery or location before Franchisor has approved it in writing and sent Developer the countersigned Franchise Agreement is at Developer's sole risk, and will be Developer's sole responsibility. With respect to any Franchise Agreement executed in connection with this Agreement, Franchisor acknowledges and agrees that:
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, once Cinnaholic receives the signed Franchise Agreement, the franchise fee, and all required ancillary items in a satisfactory state from the developer, Cinnaholic will then countersign the Franchise Agreement. Following this, Cinnaholic will return one fully signed copy of the agreement to the developer.
It is important to note that any obligations or liabilities the developer incurs regarding the proposed bakery or its location before Cinnaholic provides written approval and returns the countersigned Franchise Agreement are solely at the developer's risk and responsibility. This means the franchisee should avoid making any financial commitments or taking actions related to the site before receiving the fully executed agreement from Cinnaholic.
This process protects both Cinnaholic and the franchisee by ensuring that both parties are in agreement before moving forward. The franchisee should carefully review all terms and conditions before signing and submitting the agreement and franchise fee to Cinnaholic. This also highlights the importance of securing the franchise agreement before investing in a specific location or incurring other related expenses.