Who is responsible for paying the General Contractor for their services in constructing the Cinnaholic Bakery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisee, referred to as the Developer, is solely responsible for paying the General Contractor for all services rendered during the construction of the Cinnaholic Bakery. Cinnaholic may designate a General Contractor or provide a list of approved contractors, but the financial obligation rests entirely with the Developer.
This means that prospective Cinnaholic franchisees must factor in the costs of the General Contractor when planning their initial investment. It is crucial to obtain detailed quotes and establish clear contracts with the General Contractor to manage expenses effectively. While Cinnaholic may offer standard architectural plans, the franchisee is responsible for ensuring the construction adheres to these plans and for covering any costs associated with deviations or corrections.
Furthermore, the FDD states that Cinnaholic assumes no responsibility for the quality of construction or the performance of any contractor, even if the contractor was designated or approved by Cinnaholic. This underscores the importance of the franchisee's due diligence in selecting a reputable and experienced General Contractor. The franchisee should also conduct regular site inspections and maintain open communication with the contractor to address any issues promptly.
In summary, while Cinnaholic may provide assistance in the form of approved contractor lists or standard architectural plans, the financial and operational responsibility for the bakery's construction, including payments to the General Contractor, falls squarely on the franchisee. This highlights the need for careful financial planning and proactive management of the construction process.