In the AAA Arbitration Case No. 01-23-0000-2264 involving Cinnaholic, what was the nature of the claim brought against Calipto Foods Inc. and Philip Edwards?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
t prejudice May 22, 2023.
In Re: Cinnaholic Franchising, LLC v. Calipto Foods, Inc. and Philip Edwards, AAA Arbitration Case No. 01-23-0000-2264.
Franchisor brought a claim for breach of contract against a terminated franchisee and its guarantor. Respondents Calipto Foods Inc. and Philip Edwards counterclaimed that the Franchisor's claims were frivolous and sought unspecified damages and attorney's fees. The arbitration concluded on or about January 18, 2024, with an award in favor of the Franchisor for $42,234.22 in liquidated damages and in favor of the Franchisor on R
Source: Item 3 — LITIGATION (FDD pages 9–11)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the arbitration case AAA Arbitration Case No. 01-23-0000-2264 involved a claim brought by Cinnaholic Franchising, LLC against Calipto Foods, Inc. and Philip Edwards. Cinnaholic initiated the claim for breach of contract against a terminated franchisee (Calipto Foods Inc.) and its guarantor (Philip Edwards).
Calipto Foods Inc. and Philip Edwards counterclaimed, alleging that Cinnaholic's claims were frivolous. They sought unspecified damages and attorney's fees as part of their counterclaim. The arbitration concluded around January 18, 2024.
The result of the arbitration was an award in favor of Cinnaholic for $42,234.22 in liquidated damages. Additionally, the arbitrator ruled in favor of Cinnaholic on the counterclaims brought by Calipto Foods Inc. and Philip Edwards, meaning that the franchisee and its guarantor were unsuccessful in their attempt to recover damages and attorney's fees from Cinnaholic.