Is a prospective Cinnaholic franchisee expected to discuss the benefits and risks of developing and operating a Cinnaholic franchise with an existing franchisee?
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 required to complete a Franchisee Disclosure Questionnaire. This questionnaire aims to confirm that the prospective franchisee has not received any unauthorized or misleading statements, has been properly represented, and understands the limitations on potential claims related to the franchise.
The questionnaire includes specific questions to ensure the franchisee acknowledges key aspects of the franchise agreement. These include understanding the limited protected territory, dispute resolution processes, training requirements, and the fact that any statements or promises regarding costs, profits, or support must align with the information provided in the Disclosure Document.
The franchisee must sign and date the Questionnaire on the same day they sign the Development Agreement and/or Franchise Agreement and pay the associated fees, but not on the same day as receiving the Franchise Disclosure Document. This process helps Cinnaholic ensure that franchisees are fully informed and have not relied on any representations outside of the official documentation, thereby protecting both the franchisor and franchisee from potential misunderstandings or disputes.