Does Cinnaholic have the obligation to designate a single approved General Contractor?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
al Contractor. Developer shall employ a qualified general contractor, who is reputable and experienced building units of similar retail concepts, to supervise, delegate and/or perform (i) the construction and development of the Bakery, (ii) the completion of all improvements, (iii) the outfitting of the Bakery with furnishings, fixtures and equipment, and (iv) all other services that are designated by Franchisor to be performed by such general contractor in connection with constructing the Bakery (the "General Contractor"). Franchisor shall have the right, but not the obligation, to designate a single approved General Contractor or furnish Developer with a list of authorized General Contractors for Developer to employ in the construction of the Bakery. Developer shall be solely responsible for payment for all services provided by the General Contractor. Developer shall (a) employ the General Contractor prior to hiring the Architectural Firm (defined below) and (b) sign such contracts or agreements required to obtain the services of the General Contractor.
- 8.3. Architectural Firm. Franchisor shall have the right to designate one or more suppliers of design services and/or architecture services (an "Architectural Firm") to supply such services to the System. At Franchisor's option, Franchisor may authorize the General Contractor to select an Architectural Firm to assist in developing the Bakery, or may waive this requirement. Developer shall employ the Architectural Firm to furnish to Franchisor, for Franchisor's written acceptance, a proposed preliminary site and construction plans and specifications (which plans and specifications shall have been adopted from the prototype plans provided by Franchisor) for the CINNAHOLIC® Bakery which, if accepted, shall not thereafter be modified, altered or changed without Franchisor's prior written consent. Developer shall sign such contacts or agreements required to obtain the services of the Architectural Firm.
- 8.4. Construction of Bakery. Developer shall furnish Franchisor with such information relating to the construction of the Bakery and development of the site as Franchisor may from time to time request, which may include, without limitation, copies of all commitments and plans for construction and financing, the contact name, address and telephone number for any lenders and contractors, and a copy of any construction or financing agreements. Developer shall commence construction of the CINNAHOLIC® Bakery in accordance with the accepted site and construction plans and specifications as soon as possible and shall complete construction thereof, including the acquisition and installation of all equipment specified by Franchisor, and have the Bakery ready to open for business within 12 months after Franchisor's execution of the Franchise Agreement for the Bakery. Franchisor and its agents shall have the right to inspect the construction site at any reasonable time without prior notice.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic does not have the obligation to designate a single approved General Contractor for the construction of a franchisee's bakery. Cinnaholic retains the right, but not the obligation, to either designate a single approved General Contractor or provide a list of authorized General Contractors for the franchisee to choose from. The franchisee is responsible for paying the General Contractor for their services.
Cinnaholic also has the right to designate one or more suppliers of design and/or architecture services, referred to as an "Architectural Firm." At Cinnaholic's option, they may authorize the General Contractor to select an Architectural Firm or waive this requirement altogether. The franchisee must employ the Architectural Firm to furnish preliminary site and construction plans to Cinnaholic for written acceptance, based on prototype plans provided by Cinnaholic. These plans cannot be modified without Cinnaholic's prior written consent.
Cinnaholic also has the option to approve or deny a franchisee's request to use a General Contractor and/or Architectural Firm submitted by the franchisee. Cinnaholic may request information from the franchisee and the proposed General Contractor or Architectural Firm to consider the request and may charge a reasonable fee for evaluating the request. Cinnaholic may deny the request for any reason, including limiting the number of approved General Contractors and/or Architectural Firms.
Prospective franchisees should be aware that Cinnaholic assumes no responsibility for the quality of construction based on inspections or recommendations made, and is not liable for any unsatisfactory performance by any contractor, architect, or supplier, even if they were designated by Cinnaholic. The franchisee is responsible for correcting any deviations from accepted site or construction plans at their own expense.