Is Cinnaholic liable to the Developer if it fails to provide counseling and advisory services?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, Franchisor may, in its sole discretion, upon request of Developer, furnish counseling and advisory services to Developer with respect to the development, construction and operation of the CINNAHOLIC® Bakeries to be established hereunder, including consultation and advice regarding the following: (i) parking and building layouts; (ii) traffic planning; (iii) construction and financing of the Bakery and other improvements; (iv) equipment selection and layout; (v) employee selection and training; (vi) advertising and promotion; (vii) bookkeeping and accounting; and (viii) purchasing and inventory control. These counseling and advisory services shall occur at Developer's offices, via telephone or email. Franchisor shall provide such assistance at no expense to Developer; provided, however, Franchisor reserves the right, in its sole discretion, to charge Developer a reasonable fee for unusual, extensive or extraordinary assistance requested by Developer and/or require Developer to reimburse Franchisor for expenses incurred by it in connection with providing such counseling and advisory services. In no event shall Franchisor be liable to Developer in connection with providing or failing to provide such services.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic is not liable to the Developer (franchisee) if it fails to provide counseling and advisory services. Cinnaholic may, at its discretion, offer counseling and advisory services to the Developer regarding the development, construction, and operation of Cinnaholic bakeries. These services may include consultation and advice on parking, building layouts, traffic planning, construction financing, equipment selection, employee training, advertising, bookkeeping, and purchasing.
These counseling and advisory services can be provided at the Developer's offices, via telephone, or email. Cinnaholic will provide this assistance at no expense to the Developer. However, Cinnaholic reserves the right to charge a reasonable fee for unusual, extensive, or extraordinary assistance requested by the Developer, or to require the Developer to reimburse Cinnaholic for expenses incurred in providing such services.
The FDD explicitly states that Cinnaholic will not be liable to the Developer if it fails to provide these counseling and advisory services. This means that a prospective Cinnaholic franchisee cannot hold Cinnaholic legally responsible for any perceived lack of support or guidance in these areas. This clause protects Cinnaholic from potential lawsuits or claims arising from the provision or lack of these advisory services.