factual

What agreement gives Cinnaholic Franchising LLC a vested interest in the Leased Premises?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

As a condition to accepting a proposed site to be leased or subleased, Developer must sign, and cause the lessor and/or sublessor of the proposed site, to sign the Collateral Assignment of Lease attached hereto as Exhibit B.

  1. That Franchisor shall have the right, but shall not be obligated, to cure any default by Tenant under the Lease within Tenant's cure period under the Lease, or within thirty (30) days after the expiration of Tenant's cure period under the Lease, provided that prior to the expiration of Tenant's cure period under the Lease, Franchisor notifies Landlord in writing that Franchisor intends to cure such default;

  2. It is understood and agreed that so long as Franchisor shall not have exercised its option under the foregoing provisions hereof as to the Leased Premises, Franchisor shall not be liable for rent or any obligation of Tenant under and by virtue of or in connection with the Lease, and Tenant shall remain liable for such rent and obligations;

    1. Tenant and Lessor shall not, by agreement or alone, modify or terminate this lease without written consent of Franchisor;
    1. The parties hereby agree that in the event Lessor files for protection under the Bankruptcy Code, Tenant has the right to assign to Franchisor its right to elect to accede to Lessor's bankruptcy rejection of the Lease; and
    1. In order to secure Tenant's performance of the Lease and the Franchise Agreement, and in order to facilitate the agreements between Franchisor and Tenant set forth hereunder, Franchisor shall have an interest superior to Lessor on all Tenant's Trade Fixtures. For purposes of this Assignment, "Trade Fixtures" shall be defined as all merchandise, signs, fixtures, furniture, furnishings, partitions and equipment installed and owned by Tenant.

Source: Item 23 — RECEIPT (FDD pages 62–269)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic requires developers (franchisees) and lessors/sublessors to sign a Collateral Assignment of Lease as a condition of accepting a proposed site. This agreement gives Cinnaholic certain rights related to the leased premises. Cinnaholic has the right, but not the obligation, to cure any default by the tenant (franchisee) under the lease, provided they notify the landlord in writing of their intent to do so before the tenant's cure period expires, or within 30 days after. Cinnaholic is not liable for rent or any obligation of the tenant under the lease unless Cinnaholic exercises its option under the agreement. The tenant and lessor cannot modify or terminate the lease without Cinnaholic's written consent. In the event the lessor files for bankruptcy, the tenant can assign to Cinnaholic its right to elect to accede to the lessor's bankruptcy rejection of the lease. Cinnaholic has an interest superior to the lessor on all the tenant's trade fixtures to secure the tenant's performance of the lease and the Franchise Agreement and to facilitate the agreements between Cinnaholic and the tenant. Trade Fixtures are defined as all merchandise, signs, fixtures, furniture, furnishings, partitions, and equipment installed and owned by the tenant.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.