In Maryland, what is deferred until the Cinnaholic franchisor completes its pre-opening obligations?

According to Cinnaholic's 2025 Franchise Disclosure Document, an addendum for the state of Maryland stipulates that all initial fees and payments owed by franchisees are deferred. This deferral remains in effect until Cinnaholic fulfills its pre-opening obligations as outlined in the franchise agreement. Additionally, all development fees and initial payments by area developers are also deferred until the first franchise under the development agreement is opened.

This requirement is based on Cinnaholic's financial condition, as mandated by the Maryland Securities Commissioner, who requires a financial assurance. This deferral provides a level of financial protection for franchisees in Maryland, ensuring that they do not have to pay initial fees until Cinnaholic has met its obligations to help them get their franchise locations up and running.

For a prospective Cinnaholic franchisee in Maryland, this means they will not be required to pay the initial franchise fee or any other initial payments until Cinnaholic has completed its pre-opening responsibilities, such as site selection assistance, providing architectural plans, initial training, and other support services. This could reduce the initial financial burden on the franchisee and provide some assurance that Cinnaholic is committed to supporting the launch of their franchise.