What qualifications must the General Contractor employed by the Developer for the Cinnaholic bakery have?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
pproval. Upon Franchisor's written acceptance of a proposed site in accordance with Section 7.1 above, Developer shall proceed promptly to enter into the approved lease, sublease or purchase agreement for the accepted site and obtain all necessary zoning, building and other governmental or regulatory approvals and permits required for the establishment of the Bakery. Franchisor shall provide Developer with a set of standard architectural plans and specifications for a prototype CINNAHOLIC® Bakery.
- 8.2. General Contractor. Developer shall employ a qualified general contractor, who is reputable and experienced building units of similar retail concepts, to supervise, delegate and/or perform (i) the construction and development of the Bakery, (ii) the completion of all improvements, (iii) the outfitting of the Bakery with furnishings, fixtures and equipment, and (iv) all other services that are designated by Franchisor to be performed by such general contractor in connection with constructing the Bakery (the "General Contractor"). Franchisor shall have the right, but not the obligation, to designate a single approved General Contractor or furnish Developer with a list of authorized General Contractors for Developer to employ in the construction of the Bakery. Developer shall be solely responsible for payment for all services provided by the General Contractor. Developer shall (a) employ the General Contractor prior to hiring the Architectural Firm (defined below) and (b) sign such contracts or agreements required to obtain the services of the General Contractor.
- 8.3. Architectural Firm. Franchisor shall have the right to designate one or more suppliers of design services and/or architecture services (an "Architectural Firm") to supply such services to the System.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the General Contractor employed by the Developer must be qualified, reputable, and experienced in building units of similar retail concepts. The General Contractor is responsible for supervising, delegating, and/or performing the construction and development of the Cinnaholic bakery. This includes completing all improvements, outfitting the bakery with furnishings, fixtures, and equipment, and performing all other services designated by Cinnaholic in connection with constructing the bakery.
Cinnaholic has the right, but not the obligation, to designate a single approved General Contractor or provide the Developer with a list of authorized General Contractors. However, Cinnaholic may choose to approve or deny a Developer's request to use a General Contractor. In connection with such a request, the Developer and the proposed General Contractor must submit all information and data as Cinnaholic may require to consider the request. Cinnaholic may also charge the Developer a reasonable fee for evaluating the request to use a proposed General Contractor.
This means that as a prospective franchisee, you may have limited choice in selecting a general contractor, as Cinnaholic retains significant control over the approval process. It is important to note that Cinnaholic assumes no responsibility for the quality of construction due to any inspections made or any reports or recommendations made as a result of such inspections. Cinnaholic is also not liable for any unsatisfactory performance of any contractor retained by the Developer, even if that contractor was designated by Cinnaholic. Therefore, the franchisee bears the ultimate responsibility for ensuring the General Contractor performs satisfactorily.
Prospective franchisees should carefully consider the implications of Cinnaholic's approval rights and the franchisee's responsibility for the General Contractor's performance. It would be prudent to discuss with Cinnaholic the criteria they use to evaluate and approve General Contractors, and to understand the process for resolving any performance issues that may arise during construction. Additionally, franchisees should conduct their own due diligence on any General Contractor they intend to use, even if the contractor is on Cinnaholic's approved list.