What does the initial franchise fee for Cinnaholic include?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 1: The initial franchise fee includes the loan of our Operations Manual and initial training for up to two individuals having responsibility for the day-to-day operations of your Bakery. See Item 11 of this Disclosure Document for additional information about the initial training program. The initial franchise fee is not refundable under any circumstances.
As discussed in Item 5 of this Disclosure Document, you will pay a Development Fee based on the number of Bakeries you must develop under the Development Agreement. The minimum number of Bakeries being one. In most circumstances, the Development Fee is credited against the initial franchise fee you must pay for each Bakery developed and opened according to your Development Schedule. If a Bakery is not established in accordance with the Development Schedule, the Development Fee that would have otherwise been credited towards payment of the initial franchise fee for that Bakery will be forfeited and retained by us.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the initial franchise fee of $40,000 includes the loan of the Operations Manual and initial training for up to two individuals responsible for the day-to-day operations of the bakery. This training is further detailed in Item 11 of the FDD. The initial franchise fee is non-refundable under any circumstances.
For franchisees entering into a Development Agreement, a Development Fee is paid based on the number of bakeries to be developed, with a minimum of one. In most cases, this Development Fee is credited against the initial franchise fee for each bakery that is developed and opened according to the agreed-upon Development Schedule. However, if a bakery is not established according to the schedule, the portion of the Development Fee that would have been credited towards the initial franchise fee for that bakery will be forfeited and retained by Cinnaholic.
Prospective franchisees should carefully review Item 11 in the FDD to understand the scope and content of the initial training program. They should also consider the implications of the Development Agreement, particularly the potential forfeiture of Development Fees if the development schedule is not met. Understanding these conditions is crucial for making an informed investment decision.