Are Cinnaholic Bound Parties prohibited from interfering with the employment relationship between other Cinnaholic Franchisees and their employees?

According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic franchisees and their Bound Parties are restricted from interfering with the employment relationships of other Cinnaholic franchisees. Specifically, while the Franchise Agreement is in effect, and for one year after the agreement expires or terminates, or following a transfer by the franchisee, they cannot directly or indirectly solicit or attempt to solicit employees of other Cinnaholic franchisees. This includes any actions that could disrupt the employment relationship.

This non-solicitation clause is designed to protect the stability of the Cinnaholic franchise system. By preventing franchisees from poaching employees from one another, Cinnaholic aims to reduce turnover and maintain consistent service quality across all locations. This restriction applies not only during the term of the agreement but also for one year afterward, providing an additional layer of protection.

This type of clause is common in franchise agreements to protect the franchisor and franchisees. Prospective Cinnaholic franchisees should understand that this restriction is mutual, meaning they are also protected from other franchisees soliciting their employees. This can be a significant benefit, as it helps to maintain a stable and trained workforce, which is crucial for the success of a Cinnaholic bakery.