Does Cinnaholic acknowledge that the restrictive covenants in Section 14 cause undue hardship on the Developer or other individuals required to comply with the covenants?

According to Cinnaholic's 2025 Franchise Disclosure Document, the franchise agreement contains restrictive covenants that apply to the developer (franchisee) and other related parties. Cinnaholic acknowledges that the covenants and restrictions outlined in Section 14 of the agreement are considered reasonable, appropriate, and necessary to protect the Cinnaholic system, other franchisees, and the legitimate interests of the franchisor.

Specifically, Cinnaholic states that these covenants and restrictions do not cause undue hardship on the developer or any other individuals required to comply with them. This acknowledgement is a standard practice in franchising, where franchisors implement non-compete and confidentiality agreements to safeguard their brand, trade secrets, and customer relationships.

Prospective Cinnaholic franchisees should carefully review Section 14 of the franchise agreement and Exhibit C (the Personal Covenants) to fully understand the scope and implications of these restrictions. It is advisable to seek legal counsel to assess the reasonableness and enforceability of these covenants in the franchisee's specific jurisdiction. Understanding these obligations is crucial before entering into a franchise agreement with Cinnaholic.