When is the Transfer/Assignment Fee under the Franchise Agreement payable to Cinnaholic?
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 payable before the consummation of the transfer or sale. This fee is triggered when a franchisee decides to transfer or sell their franchise to another party.
The amount of the Transfer/Assignment Fee is one half of the then-current initial franchise fee at the time of the transfer or assignment, plus any expenses Cinnaholic incurs during the transfer process. It is important to note that the payment of this fee is one of the conditions that must be met before Cinnaholic will approve a franchise transfer, as further detailed in Item 17 of the FDD.
For a prospective Cinnaholic franchisee, this means that if they decide to sell their franchise in the future, they will need to pay this transfer fee before the sale can be finalized. This fee covers Cinnaholic's administrative costs and efforts in approving the transfer and ensuring the new franchisee meets their standards. Franchisees should factor this potential cost into their long-term financial planning and consider it when evaluating the profitability of their Cinnaholic franchise.