Have I reviewed the Cinnaholic Disclosure Document, Development Agreement, and Franchise Agreement with a professional advisor?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Please review each of the following questions carefully and provide honest responses to each question. If you answer "No" to any of the questions below, please explain your answer on the back of this sheet.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, Exhibit I includes a Franchisee Disclosure Questionnaire that Cinnaholic requires prospective franchisees to complete. The purpose of this questionnaire is to ensure that no unauthorized statements or promises have been made, that the franchisee has been properly represented, and that the franchisee understands the limitations on claims they can make regarding the franchise.
The questionnaire is designed to confirm that the franchisee has not relied on any misleading information and fully understands the terms and conditions of the franchise agreement. Cinnaholic requires the questionnaire to be signed and dated the same day the Development Agreement and/or Franchise Agreement are signed and when the development and/or franchise fee is paid. However, the questionnaire cannot be signed or dated on the same day as the Receipt for the Franchise Disclosure Document.
While the questionnaire aims to ensure the franchisee's understanding and representation, it does not explicitly ask whether the franchisee has reviewed the documents with a professional advisor. The questionnaire includes questions to confirm the franchisee understands aspects of the agreement, such as radius restrictions, dispute resolution, training requirements, and that no unauthorized promises have been made. The questionnaire also states that the Development Agreement and the Franchise Agreement contain the entire agreement between Cinnaholic and the franchisee.
Prospective franchisees should consider consulting with a professional advisor, such as an attorney or financial consultant, to review the Cinnaholic Disclosure Document, Development Agreement, and Franchise Agreement to fully understand their obligations and the risks involved before signing any agreements or paying any fees.