Does Cinnaholic require a franchisee to acknowledge that they received the franchise disclosure document at least 14 calendar days before signing any agreement or paying consideration?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
If Cinnaholic Franchising, LLC offers you a franchise, it must provide this Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale. However, some state franchise laws, including New York, require Cinnaholic Franchising, LLC to provide this Disclosure Document to you at the first personal meeting held to discuss the franchise sale or at least 10 business days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic must provide the Franchise Disclosure Document to prospective franchisees 14 calendar days before they sign a binding agreement or make a payment to Cinnaholic or its affiliates. This 14-day period allows potential franchisees to thoroughly review the document and seek professional advice before committing to the franchise. However, some state franchise laws, such as in New York, may require Cinnaholic to provide the FDD at the first personal meeting to discuss the franchise sale or at least 10 business days before signing an agreement or making a payment.
The Franchise Disclosure Questionnaire included as Exhibit I states that a franchisee cannot sign or date the questionnaire on the same day as the receipt for the Franchise Disclosure Document. The franchisee 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 requirement ensures that franchisees have had adequate time to review the FDD and consider its contents before making any financial commitments or signing agreements.
It is important for prospective Cinnaholic franchisees to be aware of these disclosure requirements and to carefully review the FDD and all related documents before signing any agreements or making any payments. Franchisees should also consult with an attorney or financial advisor to ensure they fully understand the terms of the franchise agreement and the risks and benefits of investing in a Cinnaholic franchise. Failure to receive the FDD within the required timeframe or to properly review its contents could have significant legal and financial consequences.