factual

What is the maximum frequency with which Cinnaholic can require a franchisee to perform Refurbishments?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

In addition to all your other obligations in the Franchise Agreement and Operations Manual related to repairing and maintaining the Bakery, at our request, but not more often than once every 5 years, unless sooner required by your lease, you must refurbish the premises of the Bakery at your expense, to conform to the bakery, trade dress, color schemes and presentation of the Marks in a manner consistent with the then-current image for new CINNAHOLIC® Bakeries ("Refurbishments"). Refurbishments may include structural changes, installation of new equipment and signs, remodeling, redecoration and modifications to existing improvements. We are unable to estimate your costs for future Refurbishments which will vary from Bakery to Bakery based on a number of factors like: (i) the market where your franchise is located; (ii) the size of your Bakery; (iii) when your Bakery was last refurbished, if applicable; (iv) the amount of CINNAHOLIC® franchise system changes since the last refurbishment; and (v) the overall condition of your Bakery site and equipment.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic can request franchisees to conduct refurbishments of their bakery premises, but not more often than once every 5 years. However, there is an exception: if the lease agreement for the bakery requires refurbishments sooner, the franchisee must comply with the lease terms. These refurbishments are at the franchisee's expense and must conform to the current image for new Cinnaholic bakeries.

The refurbishments may involve significant changes, including structural modifications, installation of new equipment and signs, remodeling, redecoration, and modifications to existing improvements. The costs associated with these refurbishments can vary considerably from one bakery to another. Factors influencing the cost include the market location of the franchise, the size of the bakery, when the bakery was last refurbished (if applicable), the extent of changes in the Cinnaholic franchise system since the last refurbishment, and the overall condition of the bakery site and equipment.

Because of these variable factors, the FDD states that Cinnaholic is unable to provide an estimate of refurbishment costs. This lack of a concrete estimate introduces a degree of financial uncertainty for prospective franchisees. It is important for potential franchisees to consider that these costs could be substantial and to factor this into their financial planning. Speaking with existing franchisees may provide insight into the typical costs associated with refurbishments.

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.