Is a purchaser required to comply with Cinnaholic's training requirements for a franchise transfer to be approved?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2. Training of Employees. Franchisee shall implement a training program approved by Franchisor for employees of the Bakery and shall be responsible for the proper training of its employees. Franchisee agrees not to employ any person who fails or refuses to complete Franchisee's training program or is unqualified to perform his or her duties at the Bakery in accordance with the requirements established for the operation of a CINNAHOLIC® Bakery.
- 14.3. Additional Training. Franchisee and its Managers and employees shall attend and conduct such additional training programs as Franchisor may from time to time reasonably require relating to the operation of the Bakery and the CINNAHOLIC®. Franchisee also may be required to purchase training films or other instructional materials as specified by Franchisor from time to time in the Operations Manual or otherwise.
- 14.4. Conferences. Franchisor may require Franchisee and/or one or more of the operating managers of the Bakery to attend conferences which may be offered by Franchisor from time to time. Franchisee will be responsible for the travel and living expenses of such persons, and Franchisor may charge a reasonable fee sufficient to cover the costs and expenses of such conferences.
- 14.5. Requirements to Attend Training. All individuals participating in training programs offered by Franchisor must (i) behave in a professional, non-disruptive, non-harassing and nondiscriminatory manner during training, (ii) not be under the influence of any stimulant during training, and (iii) satisfy any other training pre-requisites set forth in the Operations Manual or otherwise. Franchisor has a right to terminate training for any individual that, in Franchisor's judgment, does not satisfy the requirements in this Section and Franchisee must immediately designate a replacement.
15. MARKS
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
Based on the 2025 Cinnaholic Franchise Disclosure Document, while the document outlines training requirements for franchisees and their employees, it does not explicitly state whether a purchaser in a franchise transfer must comply with these training requirements for the transfer to be approved.
The FDD details the initial and ongoing training obligations of the franchisee, including implementing an approved training program for bakery employees and ensuring that a trained individual is present during business hours. It also mentions additional training programs and conferences that franchisees, managers, and employees may be required to attend. These stipulations emphasize Cinnaholic's commitment to maintaining consistent quality and operational standards across all franchise locations.
However, the FDD does not directly address whether a potential buyer in a franchise transfer scenario must undergo training as a prerequisite for approval. The document does state that Cinnaholic will not unreasonably withhold consent to a transfer if the requirements of Section 19.4 have been satisfied, but it does not specify what those requirements are.
Therefore, a prospective franchisee should clarify with Cinnaholic the specific training requirements, if any, for a purchaser to be approved in a franchise transfer. Understanding these requirements is crucial for anyone considering buying an existing Cinnaholic franchise to ensure a smooth and successful transition.