How much is the Transfer/Assignment Fee under the Development Agreement for a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer/Assignment Fee under Development Agreement | $5,000 plus expenses | Before the consummation of the transfer or sale | Payable when, and if, you transfer or sell the Development Agreement. There are other conditions to this transfer (See Item 17 of this Disclosure Document) |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the Transfer/Assignment Fee under the Development Agreement is $5,000 plus expenses. This fee is payable before the consummation of the transfer or sale of the Development Agreement. It's important to note that there are other conditions to this transfer, as detailed in Item 17 of the FDD.
For a prospective Cinnaholic developer, this means that if they decide to sell their rights to develop Cinnaholic locations in a specific area, they will need to pay Cinnaholic $5,000, plus cover any expenses Cinnaholic incurs related to the transfer. These expenses are not defined in the FDD and could include legal or administrative costs.
Franchise agreements typically include transfer fees to compensate the franchisor for the administrative work and potential re-training involved in bringing on a new franchisee or developer. The fee also ensures that the franchisor maintains control over who enters the Cinnaholic system. Item 17 of the FDD should be reviewed carefully to understand all conditions that must be met for a transfer to be approved by Cinnaholic. A prospective franchisee should clarify with Cinnaholic what specific 'expenses' they can expect to pay in addition to the $5,000 fee.