If a Cinnaholic franchisee fails to cure a quality failure, what right does the Franchisor have?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and its duly authorized representatives shall have the right, if they so elect, at all reasonable times, to enter and inspect the Bakery to ensure that Franchisee is complying with such specifications, standards, business practices, policies and requirements and to test any and all equipment, systems, products and ingredients used in connection with the operation of the Bakery.
If Franchisee in any way shall fail to maintain the standards of quality for the products and services as established by Franchisor from time to time, Franchisor shall notify Franchisee in writing of the failure and give Franchisee 10 days in which to cure such failure.
If Franchisee fails to cure such failure within such 10 day period, Franchisor shall, in addition to any other remedy available to it, have the right to assign to the Bakery such persons as it deems necessary for the training of Franchisee's employees to ensure that the standards of quality for the products and services are maintained.
Franchisee shall reimburse Franchisor for all costs associated with providing such personnel, including costs of transportation, meals, lodging, salaries, wages and 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, if a franchisee fails to maintain the quality standards for products and services, Cinnaholic will notify the franchisee in writing and allow 10 days to correct the failure. If the franchisee does not fix the issue within that 10-day period, Cinnaholic has the right to assign personnel to the bakery to train the franchisee's employees to ensure quality standards are met.
In this situation, the franchisee is responsible for reimbursing Cinnaholic for all costs associated with providing the training personnel. These costs include transportation, meals, lodging, salaries, wages, other compensation, and fringe benefits. This means the franchisee will bear the financial burden of bringing their staff up to Cinnaholic's standards.
In addition to assigning personnel for training, Cinnaholic retains any other remedies available to them. This could include further penalties or actions as outlined in the franchise agreement. Cinnaholic also has the right to enter and inspect the bakery at all reasonable times to ensure compliance with quality standards, specifications, business practices, policies, and requirements, and to test equipment, systems, products, and ingredients.