Under what conditions are transfer fees collectable for a Cinnaholic franchise transfer?

According to Cinnaholic's 2025 Franchise Disclosure Document, transfer fees are collectable only to the extent that they reflect Cinnaholic's reasonable estimated or actual costs in effecting a transfer. This means that Cinnaholic can only charge a transfer fee that covers the expenses they incur during the transfer process.

This provision protects prospective Cinnaholic franchisees from excessive or arbitrary transfer fees. It ensures that the fees charged are directly related to the costs Cinnaholic incurs, such as administrative, legal, or training expenses associated with the transfer.

However, the FDD does not specify what these 'reasonable estimated or actual costs' might include. A prospective franchisee should seek clarification from Cinnaholic regarding the specific costs covered by the transfer fee to fully understand the financial implications of transferring their franchise in the future.