What is the maximum service charge that Cinnaholic can impose on NSF checks in Minnesota?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
f any claim, suit, or demand regarding the use of the name.
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Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Minnesota Statute 604.113 sets a limit of $30 on service charges for NSF (non-sufficient funds) checks. This means that if a Cinnaholic franchisee in Minnesota receives a check that bounces due to insufficient funds, the maximum service charge they can legally impose on the customer is $30.
This regulation protects customers from excessive fees on returned checks. For a Cinnaholic franchisee, it's crucial to be aware of this legal limit to ensure compliance and avoid potential legal issues. They should ensure their point-of-sale (POS) system and accounting practices are set up to reflect this maximum charge.
It is important for prospective Cinnaholic franchisees in Minnesota to understand and adhere to all state-specific regulations, including those related to NSF checks, to maintain legal compliance and positive customer relations.