What is a prospective Cinnaholic franchisee required to do if they answer 'No' to any of the questions in the Franchisee Disclosure Questionnaire?
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, prospective franchisees are required to complete a Franchisee Disclosure Questionnaire as part of the process of entering into a Development Agreement and Franchise Agreement. The purpose of this questionnaire is to ensure that no unauthorized or untrue statements have been made to the franchisee, that the franchisee has been properly represented, and that the franchisee understands the limitations on claims they can make regarding the franchise.
If a prospective Cinnaholic franchisee answers "No" to any of the questions on the Franchisee Disclosure Questionnaire, they must explain their answer on the back of the questionnaire sheet. This requirement ensures that Cinnaholic is aware of any potential issues or concerns the franchisee may have before finalizing the franchise agreement.
It is important to note that the franchisee cannot sign or date the Questionnaire on the same day as the Receipt for the Franchise Disclosure Document. However, they must sign and date it on the same day they sign the Development Agreement and/or Franchise Agreement and pay their development and/or franchise fee. This timing is designed to ensure that the franchisee has had sufficient time to review the Franchise Disclosure Document and consider the questions in the Franchisee Disclosure Questionnaire carefully before committing to the franchise.