Is a prospective Cinnaholic franchisee allowed to sign the Franchisee Disclosure Questionnaire on the same day as the Receipt for the Franchise Disclosure Document?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
As you know, Cinnaholic Franchising, LLC ("we", "us" or "our") and you are preparing to enter into a Development Agreement and Franchise Agreement for the operation of a CINNAHOLIC® franchise. The purpose of this Questionnaire is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, to be certain that you have been properly represented in this transaction, and to be certain that you understand the limitations on claims you may make by reason of the purchase and operation of your franchise. You cannot sign or date this Questionnaire the same day as the Receipt for the Franchise Disclosure Document but you must sign and date it the same day you sign the Development Agreement and/or Franchise Agreement and pay your development and/or franchise fee. Please review each of the following questions carefully and provide honest responses to each question. If you answer "No" to any of the questions below, please explain your answer on the back of this sheet.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a prospective franchisee is not allowed to sign the Franchisee Disclosure Questionnaire on the same day as the Receipt for the Franchise Disclosure Document. The Franchise Disclosure Questionnaire, outlined in Exhibit I, serves to confirm that the franchisee has not received any unauthorized or misleading information and that they understand the limitations of their claims related to the franchise.
Specifically, the FDD states that the Franchisee Disclosure Questionnaire must be signed and dated on the same day the franchisee signs the Development Agreement and/or Franchise Agreement and pays the development and/or franchise fee. This timing ensures that the franchisee has had sufficient time to review the Franchise Disclosure Document (FDD) and reflect on the information provided before committing to the franchise.
This requirement is in place to protect both Cinnaholic and the franchisee by ensuring that the franchisee has had adequate time to consider the details of the franchise agreement before making a final commitment. By separating the signing of the questionnaire from the receipt of the FDD, Cinnaholic aims to prevent any claims of rushed decisions or lack of understanding on the part of the franchisee.