Is the initial franchise fee for Cinnaholic refundable?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
*All of the above expenditures are non-refundable.
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 is not refundable under any circumstances. The FDD states clearly that all expenditures listed in Item 7, which includes the initial franchise fee, are non-refundable. The initial franchise fee is $40,000 for each bakery. This fee grants the franchisee the right to use Cinnaholic's Operations Manual and provides initial training for up to two individuals responsible for the bakery's daily operations.
Prospective Cinnaholic franchisees should be aware that this non-refundable policy means that once the initial franchise fee is paid, it will not be returned, regardless of whether the bakery opens or the franchise agreement is terminated. This is a standard practice in franchising, as the fee covers Cinnaholic's initial costs in evaluating and setting up the franchisee.
Furthermore, the Development Fee, which is paid based on the number of bakeries a franchisee commits to develop under the Development Agreement, is generally credited against the initial franchise fee for each bakery opened according to the development schedule. However, if a bakery is not established as per 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. This arrangement underscores the importance of adhering to the development schedule outlined in the Development Agreement.