If a Cinnaholic franchisee requests additional opening assistance, what costs are they responsible for?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event you request additional opening assistance, which we envision will only occur in unique circumstances, and we agree to provide you with the extra assistance, you must reimburse us for all costs and expenses we incur in connection with providing you this additional assistance, including, wages, overhead and travel and living expenses of our employees providing the assistance and we have the right to charge our daily fee for additional assistance (see Item 6). It is not possible to estimate a range of these additional costs and expenses because they will vary depending upon a number of factors like the franchisee, the amount of extra assistance requested and the location of the franchise.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if a franchisee requests and Cinnaholic agrees to provide additional opening assistance beyond the standard support, the franchisee is responsible for reimbursing Cinnaholic for all associated costs and expenses. These costs include the wages, overhead, travel, and living expenses of Cinnaholic employees providing the assistance. Additionally, Cinnaholic has the right to charge its daily fee for this extra assistance, as detailed in Item 6 of the FDD.
The FDD indicates that it is not possible to estimate a range for these additional costs, as they can vary significantly. The specific amount depends on factors such as the individual franchisee's needs, the extent of extra assistance requested, and the location of the franchise. This means a franchisee should be prepared for potentially substantial and unpredictable expenses if they anticipate needing more support than typically provided during the opening phase.
Prospective Cinnaholic franchisees should carefully consider their own capabilities and experience in opening and managing a similar business. If they foresee a need for significant additional support, they should discuss this in detail with Cinnaholic during the due diligence process to better understand the potential financial implications. Item 6 of the FDD, referenced in the quote, may provide further details on the daily fees associated with additional assistance. It's also important to note that these additional costs are separate from the initial franchisee fee and any Development Fees.