Are Cinnaholic Bound Parties prohibited from interfering with the employment relationship between the Franchisor and its employees?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
f the court to that deemed reasonable. Franchisor shall, as a matter of course, receive injunctive relief to enforce such covenants in addition to any other relief to which it may be entitled at law or in equity. Franchisor shall receive such injunctive relief without the necessity of posting bond or other security, such bond or other security being hereby waived.
20.2. Non-Solicitation of Employees. Franchisee 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 Franchisee, 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.
20.3. Trade Secrets and Confidential Information.
- (i) Franchisee acknowledges and agrees that in connection with the operation of CINNAHOLIC® Bakeries and the CINNAHOLIC® System, Franchisor has developed at a great expense competitively sensitive proprietary and confidential information which are not commonly known by or available to the public. This proprietary and confidential information does not include any information that (a) is commonly known by or available to the public; (b) has been voluntarily disclosed to the public by Franchisor; (c) been independently developed or lawfully obtained by Franchisee; or (d) has otherwise entered the public domain through lawful means. All information which comprises the CINNAHOLIC® System including the information and data in the Operations Manual will be presumed to be confidential information of Franchisor.
- (ii) Franchisee and each Bound Party agree that while this Agreement remains in effect such party will not, directly or indirectly, disclose or publish to any party, or copy or use for such party's own benefit, or for the benefit of any other party, any of Franchisor's proprietary or confidential information, except as required to carry out Franchisee's obligations under this Agreement or as Franchisor has otherwise expressly approved in writing. All proprietary and confidential information of Franchisor is the sole and exclusive property of Franchisor. Franchisee and each Bound Party agree that the restriction contained in the preceding sentence will remain in effect with respect to the confidential information for five years following termination or expiration of this Agreement for any reason;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, franchisees and other bound parties are restricted from interfering with the employment relationships of Cinnaholic and its franchisees. Specifically, while the franchise agreement is in effect, and for one year after the agreement expires, terminates, or is transferred, franchisees and bound parties cannot directly or indirectly solicit or attempt to solicit employees of Cinnaholic or other Cinnaholic franchisees. This includes any actions that could disrupt the employment relationship.
This non-solicitation clause is further reinforced by the requirement that each Bound Party of the franchisee must sign and deliver Personal Covenants, agreeing to be personally bound by the non-solicitation provisions. This ensures that these individuals are legally obligated to adhere to these restrictions. Cinnaholic may also require the franchisee to ensure that their management, supervisory, and other employees who have access to confidential information sign non-competition, non-solicitation, and/or non-disclosure agreements.
These restrictive covenants are acknowledged by Cinnaholic franchisees as reasonable and necessary to protect the Cinnaholic system, other franchisees, and the legitimate interests of Cinnaholic. Failure to comply with these restrictions constitutes a breach of the franchise agreement, which can lead to termination of the agreement. This is designed to protect Cinnaholic's investment in its employees and maintain stability within the franchise network.