factual

Is Cinnaholic liable to the franchisee if they fail to provide counseling and advisory services?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

During the term of this Agreement, Franchisor may, in its sole discretion, upon the request of Franchisee, furnish counseling and advisory services to Franchisee with respect to the opening and operation of the Bakery, including consultation and advice regarding the following: (i) equipment selection and layout; (ii) employee selection and training; (iii) advertising and promotion; (iv) recipes, food, formulas and specifications; (v) bookkeeping and accounting; (vi) purchasing and inventory control; (vii) operational problems and procedures; (viii) periodic inspections; and (ix) new developments and improvements to the CINNAHOLIC® System. These counseling and advisory services shall occur at Franchisor's offices or via telephone or e-mail. Franchisor shall provide such assistance at no expense to Franchisee; provided, however, Franchisor reserves the right, in its sole discretion, to charge Franchisee a reasonable fee for unusual, extensive or extraordinary assistance requested by Franchisee and/or require Franchisee to reimburse Franchisor for expenses incurred by it in connection with providing such counseling and advisory services. In addition, if requested by Franchisee and Franchisor's personnel are available, Franchisor may provide onsite assistance and training at the Bakery, however, Franchisor reserves the right to charge a reasonable fee for this onsite assistance plus expenses and costs incurred by Franchisor in rendering such assistance. In no event shall Franchisor be liable to Franchisee in connection with providing or failing to provide such services.

Source: Item 22 — CONTRACTS (FDD pages 61–62)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic is not liable to franchisees if they fail to provide counseling and advisory services. Cinnaholic may furnish counseling and advisory services to the franchisee regarding the opening and operation of the bakery, including consultation and advice on equipment selection, employee training, advertising, recipes, bookkeeping, purchasing, operational problems, inspections, and system improvements. These services can be provided at Cinnaholic's offices, via telephone, or email, generally at no expense to the franchisee.

However, Cinnaholic can charge a reasonable fee for extensive or extraordinary assistance requested by the franchisee or require the franchisee to reimburse expenses incurred while providing these services. Cinnaholic may also provide on-site assistance and training at the bakery for a reasonable fee, plus expenses.

Despite offering these services, the franchise agreement explicitly states that Cinnaholic is not liable to the franchisee if they fail to provide these counseling and advisory services. This means that a franchisee cannot sue Cinnaholic or claim damages if Cinnaholic does not fulfill these advisory roles.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.