Who owns Cinnaholic Dunwoody LLC in part?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Parents and Affiliates. We have no parents, or predecessors. We have two affiliates, Cinnaholic Dunwoody LLC ("CDLLC"), which is owned in part by our CEO, and Cinnaholic Franchising Canada Inc. ("CFCI") which was acquired by us May 30, 2023. CDLLC is a Georgia limited liability company organized on December 14, 2021. It began operating the Cinnaholic bakery in Dunwoody, GA in December 2021. The principal business address of CDLLC is 5590 Chamblee Dunwoody Rd, Suite 1, Dunwoody, GA 30338. CDLLC has not operated any other type of business (franchise or otherwise). CFCI is a British Columbia corporation incorporated on September 29, 2017. The purpose of CFCI is to serve as the master franchisor and as franchisor of Cinnaholic franchises in certain parts of Canada. The principal business address of CFCI is 1567 Mt. Vernon Road, Suite 112, Dunwoody, GA 30338. CFCI has not operated any other type of business (franchise or otherwise).
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic Dunwoody LLC ("CDLLC") is partially owned by the CEO of Cinnaholic Franchising, LLC. CDLLC is identified as an affiliate of Cinnaholic Franchising, LLC. It was organized as a Georgia limited liability company on December 14, 2021, and began operating a Cinnaholic bakery in Dunwoody, GA, also in December 2021.
This partial ownership by Cinnaholic's CEO in an affiliated entity is a notable disclosure for potential franchisees. It indicates a direct financial interest of the CEO in a specific Cinnaholic location. While not inherently problematic, it raises questions about potential conflicts of interest or preferential treatment that could arise between the franchisor and this particular franchisee location.
Prospective franchisees should seek clarification from Cinnaholic regarding the specific percentage of ownership held by the CEO in CDLLC. They should also inquire about the operational relationship between Cinnaholic Franchising, LLC and CDLLC, ensuring that all franchisees are treated equitably and that CDLLC does not receive any undue advantages. Understanding these relationships is crucial for making an informed investment decision.