After the Cinnaholic agreement expires or terminates, for how long are the Developer and Bound Parties prohibited from soliciting Franchisor's employees?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2. Non-Solicitation of Employees. Developer and the Bound Parties agree that while this Agreement is in effect and for one year after expiration or termination of this Agreement for any reason, or following the date of a Transfer by Developer, they will not, directly or indirectly, solicit or attempt to solicit, or otherwise interfere with or disrupt the employment relationship between Franchisor and any of its employees or between any other CINNAHOLIC® franchisee and its employees.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the Developer and Bound Parties are restricted from soliciting Cinnaholic's employees for one year after the agreement's expiration or termination. This restriction also applies following the date of a Transfer by the Developer.
Specifically, the Developer and Bound Parties agree not to directly or indirectly solicit or attempt to solicit, or otherwise interfere with or disrupt the employment relationship between Cinnaholic and any of its employees. This restriction also extends to the employment relationships between any other Cinnaholic franchisee and its employees.
This non-solicitation clause prevents franchisees from poaching employees from Cinnaholic or other Cinnaholic franchisees, protecting the brand's workforce stability. It is a fairly standard clause in franchise agreements, intended to preserve the franchisor's and franchisees' investment in training and employee development. A prospective franchisee should understand that this restriction limits their ability to recruit employees from within the Cinnaholic system for a year after their franchise agreement ends.