Can Cinnaholic set off amounts that a franchisee owes against any amounts that Cinnaholic may owe the franchisee?

According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic has the right to offset any amounts a franchisee owes them against any amounts Cinnaholic may owe the franchisee. This means that if a franchisee is in debt to Cinnaholic for any reason (such as unpaid royalty fees or advertising fees), Cinnaholic can deduct that amount from any payments they might otherwise owe to the franchisee.

This provision in the franchise agreement protects Cinnaholic's financial interests by allowing them to recover outstanding debts more efficiently. It also streamlines accounting processes, as Cinnaholic doesn't have to pursue separate collection efforts if they already owe the franchisee money.

For a prospective Cinnaholic franchisee, this means understanding that any financial obligations to Cinnaholic must be carefully managed. Failure to pay fees on time could result in Cinnaholic offsetting those debts against any potential payments owed to the franchisee. Franchisees should maintain clear and accurate financial records to avoid disputes over amounts owed and ensure timely payments to Cinnaholic to avoid any set-offs.