Does Cinnaholic have the right to designate a General Contractor for the construction of the Cinnaholic bakery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Franchisor may deny such request for any reason, including its determination to limit the number of approved General Contractors and/or Architectural Firms.
Developer acknowledges and agrees that Franchisor has the right to designate the General Contractor and Architectural Firm
Developer acknowledges and agrees that (i) Franchisor assumes no responsibility for the quality of any construction because of any inspections made by it or any reports or recommendations made as a result of such inspections and (ii) Franchisor is not liable for any unsatisfactory performance of any contractor, architect, or suppler (including the General Contractor and Architectural Firm) retained by Developer, even if such contractor, architect, or supplier was designated by Franchisor.
Franchisor shall have the option of approving or denying a request from Developer to use a General Contractor and/or Architectural Firm submitted by Developer to develop and construct the Bakery.
In connection with such request, Developer and the proposed General Contractor and/or Architectural Firm shall submit all information and data as Franchisor may require to consider the request.
Franchisor reserves the right to charge Developer a reasonable fee in connection with evaluating a request to use a proposed General Contractor and/or Architectural Firm.
Franchisor may deny such request for any reason, including its determination to limit the number of approved General Contractors and/or Architectural Firms.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic has the right, but not the obligation, to designate a single approved General Contractor or furnish the Developer with a list of authorized General Contractors for the Developer to employ in the construction of the Bakery. The Developer is responsible for paying the General Contractor for all services provided.
Cinnaholic may also deny a Developer's request to use a General Contractor submitted by the Developer to develop and construct the Bakery. In connection with such a request, the Developer and the proposed General Contractor must submit all information and data as Cinnaholic may require to consider the request. Cinnaholic may charge the Developer a reasonable fee to evaluate a request to use a proposed General Contractor and may deny the request for any reason, including its determination to limit the number of approved General Contractors and/or Architectural Firms.
The Developer acknowledges that Cinnaholic is not liable for any unsatisfactory performance of any contractor retained by the Developer, even if such contractor was designated by Cinnaholic. The Developer is also responsible for correcting, at their own expense, any deviation from any accepted site or construction plans or specifications upon Cinnaholic's request.
This means that as a prospective Cinnaholic franchisee, you may be required to use a General Contractor approved or designated by Cinnaholic. While this could streamline the construction process, it also means you may not be able to choose your own contractor and could incur additional fees if you request to use a contractor not already approved by Cinnaholic. It is important to clarify with Cinnaholic any potential fees associated with using a non-approved contractor and the criteria for General Contractor approval.