Does Cinnaholic have the right to charge a daily fee for additional assistance provided to the franchisee?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement, we will provide you with assistance in opening the Bakery and training your employees. Although we do not intend to charge you for this assistance, we reserve the right to charge you for extraordinary travel and living expenses incurred by our employees in providing this assistance. In the event you request additional opening assistance, which we envision will only occur in unique circumstances, and we agree to provide you with the extra assistance, you must reimburse us for all costs and expenses we incur in connection with providing you this additional assistance, including, wages, overhead and travel and living expenses of our employees providing the assistance and we have the right to charge our daily fee for additional assistance (see Item 6). It is not possible to estimate a range of these additional costs and expenses because they will vary depending upon a number of factors like the franchisee, the amount of extra assistance requested and the location of the franchise.
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 charge a daily fee for additional assistance provided to a franchisee. While Cinnaholic provides initial assistance in opening the bakery and training employees without intending to charge for it, they may charge for extraordinary travel and living expenses incurred by their employees.
If a franchisee requests additional opening assistance, which Cinnaholic anticipates will only occur in unique circumstances, the franchisee must reimburse Cinnaholic for all associated costs. These costs include wages, overhead, and travel and living expenses for the employees providing the assistance. In addition to covering these costs, Cinnaholic has the right to charge a daily fee for providing this extra assistance. The FDD does not provide an estimate for these additional costs, as they can vary significantly based on factors such as the franchisee's needs, the amount of extra assistance requested, and the location of the franchise.
Prospective franchisees should be aware of this potential for additional fees and consider it in their financial planning. It is advisable to discuss with Cinnaholic under what specific circumstances these additional fees may be applied and to request examples of past instances where such fees were charged to better understand the potential financial impact. Understanding these conditions can help a franchisee prepare for unforeseen expenses during the bakery opening process.