What is the Transfer/Assignment Fee under the Franchise Agreement 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). |
| Transfer/Assignment Fee under Development Agreement | $5,000 plus expenses | Before the consummation of the transfer or sale | Payable when, and if, you transfer or sell the Development Agreement. There are other conditions to this 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 one half of the then-current initial franchise fee at the time of the transfer or assignment, plus expenses. This fee is payable before the consummation of the transfer or sale. Prospective franchisees should note that there are other conditions to transfer, as detailed in Item 17 of the FDD.
In practical terms, if a Cinnaholic franchisee decides to sell their franchise, they will need to pay this transfer fee to Cinnaholic before the sale can be completed. The fee covers Cinnaholic's administrative costs and ensures that the new franchisee meets their standards. The 'then-current initial franchise fee' means the initial fee that Cinnaholic is charging new franchisees at the time of the transfer, which may be different from what the original franchisee paid.
In addition to the transfer fee, the franchisee is also responsible for covering any expenses associated with the transfer. Item 17 of the FDD will provide further details on the conditions and procedures required for transferring a Cinnaholic franchise. It is important for prospective franchisees to carefully review Item 17 to understand all the requirements and obligations involved in transferring their franchise.
It is also important to note the distinction between the Transfer/Assignment Fee under the Franchise Agreement and the Transfer/Assignment Fee under the Development Agreement, which is a flat $5,000 plus expenses. The Development Agreement applies to those franchisees who have the right to develop multiple Cinnaholic locations.