Does Cinnaholic reserve the right to reduce the initial franchise fee?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 5 INITIAL FEES
Franchise Fee and Market Development Fee. You must pay us an initial franchise fee equal to $40,000 for each Bakery franchised by you. The initial franchise fee is uniform for all franchisees purchasing a franchise through this Disclosure Document. We have no intention, now or in the future, of reducing the initial franchise fee for any prospective franchisee, although we reserve the right to do so in our sole discretion on a case-by-case basis. We reserve the right to waive or reduce the initial franchise fee for our affiliates, employees, existing franchises or if we run a franchise marketing promotion. Initial franchise fees are not refundable under any circumstances.
In the year ended December 31, 2024, three franchisees received initial franchise fee discounts. One franchisee received a two-store initial franchise fee discount of $5,000 ($2,500 per store), one franchisee received an initial franchise fee discount of $5,000, and one franchisee received an initial franchise fee discount of $1,000. Our current policy is that we may offer discounts for franchisees purchasing three or more units. We also offer Veteran discounts of 10% for t
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic does reserve the right to reduce the initial franchise fee. The standard initial franchise fee is $40,000 per bakery. While Cinnaholic states they have no current intention to reduce this fee, they retain the discretion to do so on a case-by-case basis.
Notably, Cinnaholic may also waive or reduce the initial franchise fee for affiliates, employees, or existing franchisees, and may offer reductions as part of franchise marketing promotions. In 2024, three franchisees received initial franchise fee discounts: one received a $5,000 discount for a two-store purchase ($2,500 per store), another received a $5,000 discount, and a third received a $1,000 discount. Cinnaholic's current policy includes potential discounts for franchisees purchasing three or more units and a 10% Veteran discount for the first bakery franchised.
For prospective franchisees, this indicates that while the initial franchise fee is generally uniform, there are circumstances under which it may be negotiable or reduced. Veterans, those purchasing multiple units, or those affiliated with Cinnaholic may have opportunities to lower their initial investment. It is important for potential franchisees to inquire about any available discounts or promotions during their discussions with the franchisor.