Does Cinnaholic require approval of the site for a franchisee's Bakery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Site Approval and Construction. We must approve the site for your Bakery and the site must meet our then-current site criteria. If you lease the site for your Bakery, you must collaterally assign your lease to us by signing the form of Collateral Assignment of Lease attached as an exhibit to the Development Agreement and have your landlord sign the Collateral Assignment of Lease consenting to the assignment. Under the Collateral Assignment of Lease, we will be granted the right, but not the obligation, to take possession of your Bakery's premises if your franchise agreement is terminated.
You must 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 us to be performed by the general contractor in connection with constructing the Bakery (the "General Contractor"). We may designate a single approved General Contractor or furnish you with a list of approved General Contractors for you to employ in the construction of the Bakery. You must hire a General Contractor prior to hiring the Architectural Firm (defined below).
We have designated Tom Tedrow Architects as a required supplier of design services and/or architecture services (an "Architectural Firm") to supply these services to CINNAHOLIC® franchise system. At our option, we may authorize the General Contractor to select a different architectural firm to assist in developing the Bakery. You must hire the Architectural Firm to furnish to us, for our written approval, a proposed preliminary site and construction plans and specifications (which plans and specifications must be adopted from the prototype plans provided by us) for CINNAHOLIC® Bakery which, if accepted, must not be modified, altered or changed without our prior written consent. You must sign any agreements required to obtain the services of the Architectural Firm and pay for all services provided by the Architectural Firm.
We will have the option of approving or denying a request from you to use a General Contractor and/or Architectural Firm submitted by you to develop and construct your Bakery. In connection with any request, you and the proposed General Contractor and/or Architectural Firm must submit all information and data as we may require to consider the request. We reserve the right to charge you a reasonable fee in connection with evaluating a request to use a proposed General Contractor and/or Architectural Firm. We may deny a request for any reason, including our determination to limit the number of approved General Contractors and/or Architectural Firms.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic must approve the site for a franchisee's bakery, and the site must meet Cinnaholic's then-current site criteria. If a franchisee leases the site, they must collaterally assign the lease to Cinnaholic by signing the form of Collateral Assignment of Lease attached as an exhibit to the Development Agreement and have the landlord sign the Collateral Assignment of Lease consenting to the assignment. Under the Collateral Assignment of Lease, Cinnaholic will be granted the right, but not the obligation, to take possession of the Bakery's premises if the franchise agreement is terminated.
Furthermore, the franchisee must employ a qualified general contractor, who is reputable and experienced building units of similar retail concepts, to supervise the construction and development of the Bakery. Cinnaholic may designate a single approved General Contractor or furnish the franchisee with a list of approved General Contractors for them to employ in the construction of the Bakery. The franchisee must hire a General Contractor prior to hiring the Architectural Firm.
Cinnaholic has designated Tom Tedrow Architects as a required supplier of design services and/or architecture services to supply these services to the Cinnaholic franchise system. At Cinnaholic's option, they may authorize the General Contractor to select a different architectural firm to assist in developing the Bakery. The franchisee must hire the Architectural Firm to furnish to Cinnaholic, for their written approval, a proposed preliminary site and construction plans and specifications for the Cinnaholic Bakery which, if accepted, must not be modified, altered or changed without Cinnaholic's prior written consent. The franchisee must sign any agreements required to obtain the services of the Architectural Firm and pay for all services provided by the Architectural Firm.
Cinnaholic also has the option of approving or denying a request from a franchisee to use a General Contractor and/or Architectural Firm submitted by them to develop and construct their Bakery. In connection with any request, the franchisee and the proposed General Contractor and/or Architectural Firm must submit all information and data as Cinnaholic may require to consider the request. Cinnaholic reserves the right to charge the franchisee a reasonable fee in connection with evaluating a request to use a proposed General Contractor and/or Architectural Firm and may deny a request for any reason, including their determination to limit the number of approved General Contractors and/or Architectural Firms.