Which sections of the Cinnaholic Franchise Agreement and Development Agreement address the franchisee's obligation related to opening the franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
am Franchisor may require;
- (viii) Franchisee and its owners execute a general release, in a form satisfactory to Franchisor, of any and all claims it may have against Franchisor, including any affiliates or subsidiaries, and its and their officers, directors, shareholders, managers, members, partners, employees and agents; and (ix) Franchisee provides Franchisor with evidence that Franchisee has the right to remain in possession of the Franchised Site or to secure and develop a suitable alternative site acceptable to Franchisee for the renewal term.
3. FRANCHISED SITE AND TERRITORY
- 3.1. Franchised Site. The rights granted to Franchisee hereunder shall be non-exclusive and shall be restricted to the operation of a single CINNAHOLIC® Bakery to be located at the address and location set forth on Exhibit A attached hereto (the "Franchised Site"). During the term of this Agreement, the Franchised Site shall be used exclusively to operate a Bakery. In connection with the execution of any lease or sublease for the Franchised Site, Franchisee must execute, and cause the lessor and/or sublessor of the Franchised Site to execute, the Collateral Assignment of Lease attached to the Market Development Agreement entered into between Franchisor and Franchisee (the "Development Agreement"), in addition to complying with any other obligations and conditions contained in the Development Agreement relating to the lease or sublease of the Franchised Site and the development and construction of the Bakery. The rights granted to Franchisee are for the specific Franchised Site and cannot be transferred to any other location, except with Franchisor's prior w
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 26–27)
What This Means (2025 FDD)
Based on the 2025 Cinnaholic Franchise Disclosure Document, Section 3.1, titled "Franchised Site," within Item 22, "Contracts," of the Franchise Agreement, addresses the franchisee's obligations regarding the opening of their Cinnaholic bakery. This section specifies that the franchisee's rights are restricted to operating a single Cinnaholic Bakery at the location detailed in Exhibit A. The franchised site must be used exclusively for the bakery during the agreement's term.
To secure the site, the franchisee must ensure that the lessor or sublessor executes the Collateral Assignment of Lease, which is attached to the Market Development Agreement. The franchisee must also comply with all obligations and conditions in the Development Agreement related to leasing the site and constructing the bakery. The rights are site-specific and not transferable without Cinnaholic's approval.
Furthermore, after signing the lease, the franchisee will pay Cinnaholic a Project Management Fee, currently $1,795, for assistance in developing the site. This assistance includes monitoring construction, identifying potential delays, and expediting pre-construction activities. This fee and service are designed to help the franchisee navigate the initial setup phase efficiently.