When is the Renewal Fee due for a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Renewal Fee | 50% of the amount of the then-current initial franchise fee | Before renewal | Payable when, and if, you renew your Franchise Agreement. There are other conditions to renew (see Item 17 of this Disclosure Document). |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the Renewal Fee is due 'Before renewal.' The amount of this fee is 50% of the then-current initial franchise fee. This fee is payable only if the franchisee chooses to renew their Franchise Agreement, and there are other conditions to renewal that are detailed in Item 17 of the FDD.
For a prospective Cinnaholic franchisee, this means that when the initial franchise term is nearing its end, they will need to decide whether to renew the agreement. If they choose to renew, they must pay a renewal fee equivalent to half of the initial franchise fee that Cinnaholic is charging new franchisees at that time. This could be a significant expense, so franchisees should factor it into their long-term financial planning.
It's important to note that paying the Renewal Fee is not the only requirement for renewing the franchise agreement. Item 17 of the Cinnaholic FDD contains other conditions that must be met. A prospective franchisee should carefully review Item 17 to understand all the requirements for renewal and ensure they are able to meet them. This is a fairly standard practice in franchising, as franchisors typically want to ensure that franchisees are still a good fit for the system before renewing their agreements.