When is the Transfer/Assignment Fee under the Franchise Agreement due for a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer/Assignment Fee under Franchise Agreement | One half the then current initial franchise fee at the time of the Transfer/Assignment plus expenses | Before the consummation of the transfer or sale | Payable when, and if, you transfer or sell your franchise. There are other conditions to transfer (see Item 17 of this Disclosure Document). |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the Transfer/Assignment Fee under the Franchise Agreement is due before the consummation of the transfer or sale. The fee is equivalent to one-half of the then-current initial franchise fee at the time of the transfer or assignment, plus any expenses incurred. This fee is payable if and when a franchisee decides to transfer or sell their Cinnaholic franchise. Item 17 of the FDD contains other conditions related to the transfer of a franchise.
This means that if a Cinnaholic franchisee decides to sell their franchise to another party, they must pay this transfer fee to Cinnaholic before the transaction is finalized. The fee covers Cinnaholic's administrative costs and efforts in approving the transfer and ensuring the new franchisee meets their standards. The amount of the fee will depend on what the initial franchise fee is at the time of the transfer, so it could fluctuate over time.
Franchisees should carefully review Item 17 of the Cinnaholic FDD to understand all the conditions and requirements for transferring their franchise. This includes Cinnaholic's approval process, any training the new franchisee must undergo, and other obligations the selling franchisee must fulfill. Failing to comply with these requirements could delay or even prevent the transfer of the franchise.