In Virginia, when does Cinnaholic require payment of the initial franchise fee and other initial payments from franchisees?

According to Cinnaholic's 2025 Franchise Disclosure Document, the Virginia State Corporation Commission's Division of Securities and Retail Franchising mandates a specific payment schedule for initial franchise fees and other initial payments. Cinnaholic is required to defer the collection of these fees from franchisees in Virginia until Cinnaholic has fulfilled all of its pre-opening obligations as outlined in the franchise agreement.

This requirement protects prospective Cinnaholic franchisees by ensuring that the franchisor completes its initial responsibilities, such as providing training, site selection assistance, and other necessary support, before receiving the initial franchise fee. This reduces the risk for the franchisee, as they are not paying the full franchise fee until Cinnaholic has demonstrated its commitment to providing the agreed-upon pre-opening services.

For a prospective Cinnaholic franchisee in Virginia, this means that they should not be asked to pay the initial franchise fee upfront. Instead, they should expect to make the payment only after Cinnaholic has completed all of its obligations related to setting up the franchise location. This provides a safeguard and ensures that Cinnaholic is invested in the franchisee's success from the outset.