Under what conditions might Cinnaholic charge a fee for counseling and advisory services?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, Franchisor may, in its sole discretion, upon the request of Franchisee, furnish counseling and advisory services to Franchisee with respect to the opening and operation of the Bakery, including consultation and advice regarding the following: (i) equipment selection and layout; (ii) employee selection and training; (iii) advertising and promotion; (iv) recipes, food, formulas and specifications; (v) bookkeeping and accounting; (vi) purchasing and inventory control; (vii) operational problems and procedures; (viii) periodic inspections; and (ix) new developments and improvements to the CINNAHOLIC® System. These counseling and advisory services shall occur at Franchisor's offices or via telephone or e-mail. Franchisor shall provide such assistance at no expense to Franchisee; provided, however, Franchisor reserves the right, in its sole discretion, to charge Franchisee a reasonable fee for unusual, extensive or extraordinary assistance requested by Franchisee and/or require Franchisee to reimburse Franchisor for expenses incurred by it in connection with providing such counseling and advisory services. In addition, if requested by Franchisee and Franchisor's personnel are available, Franchisor may provide onsite assistance and training at the Bakery, however, Franchisor reserves the right to charge a reasonable fee for this onsite assistance plus expenses and costs incurred by Franchisor in rendering such assistance. In no event shall Franchisor be liable to Franchisee in connection with providing or failing to provide such services.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic may provide counseling and advisory services to franchisees regarding various aspects of the bakery's opening and operation, such as equipment, employee training, advertising, recipes, bookkeeping, purchasing, and operational issues. These services are typically provided at Cinnaholic's offices, or via phone or email, at no cost to the franchisee.
However, Cinnaholic reserves the right to charge a reasonable fee if a franchisee requests unusual, extensive, or extraordinary assistance. Additionally, if a franchisee requests on-site assistance and training at their bakery and Cinnaholic's personnel are available, Cinnaholic may charge a reasonable fee for this on-site assistance, as well as cover any expenses and costs incurred while providing the assistance.
It's important to note that Cinnaholic is not liable to the franchisee for providing or failing to provide these counseling and advisory services. This means that while Cinnaholic offers support, there's no guarantee of specific outcomes or recourse if the franchisee is unsatisfied with the assistance provided. Prospective franchisees should clarify what constitutes "unusual, extensive, or extraordinary assistance" to understand potential costs and ensure they budget accordingly.