If a Cinnaholic franchisee requests extra opening assistance, must they reimburse Cinnaholic for all costs and expenses?
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 receives additional opening assistance beyond what Cinnaholic typically provides, the franchisee is responsible for reimbursing Cinnaholic for all associated costs and expenses. This includes wages, overhead, travel, and living expenses incurred by Cinnaholic employees while providing the extra support. Cinnaholic also has the right to charge its daily fee for this additional assistance.
This policy means that franchisees need to carefully assess their needs for opening assistance. While Cinnaholic provides initial support, any extra help comes at a cost that the franchisee must bear. The FDD does not provide an estimated range for these additional costs, as they depend on factors such as the franchisee's specific needs, the amount of extra assistance required, and the location of the franchise.
Prospective franchisees should discuss with Cinnaholic what standard opening assistance includes and under what circumstances additional assistance might be necessary. Understanding these potential costs upfront is crucial for budgeting and financial planning. Franchisees should also inquire about the daily fee Cinnaholic charges for additional assistance to better estimate potential expenses.