What business qualifications must a purchaser have to be approved for a Cinnaholic franchise transfer?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not subfranchise, sell, assign, transfer, merge, convey or encumber (each, a "Transfer"), the Bakery, the Franchised Site, this Agreement or any of its rights or obligations hereunder, or suffer or permit any such Transfer of the Bakery, the Franchised Site, this Agreement or its rights or obligations hereunder to occur by operation of law or otherwise without the prior express written consent of Franchisor.
In addition, if Franchisee is a corporation, limited liability company, partnership, business trust, or similar association or entity, the shareholders, members, partners, beneficiaries, investors or other equity holders, as the case may be, may not Transfer their equity interests in such corporation, limited liability company, partnership, business trust, or similar association or entity, without the prior written consent of Franchisor.
Furthermore, in the event that any shareholder, member, partner, investor or other equity holder of Franchisee (the "Equity Holder") is a corporation, limited liability company, partnership, business trust, or similar association or entity, the interests of the shareholders, members, partners, beneficiaries, investors or other equity holders, as the case may be, in such Equity Holder, may not be Transferred, without the prior written consent of Franchisor.
Franchisor will not unreasonably withhold consent to a Transfer provided the requirements of Section 19.4 have been satisfied.
Any Transfer in violation of this Section shall be void and of no force and effect.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
The 2025 Cinnaholic Franchise Disclosure Document states that a franchisee cannot transfer their franchise without prior written consent from Cinnaholic. Cinnaholic will not unreasonably withhold consent to a transfer if the requirements of Section 19.4 of the franchise agreement are met.
However, the FDD excerpt does not specify the exact business qualifications a potential purchaser must possess to be approved for a franchise transfer. The document only states that Cinnaholic's consent is required and will not be unreasonably withheld if certain requirements are met, which are not detailed in this excerpt.
Therefore, a prospective franchisee should carefully review Section 19.4 of the franchise agreement to understand the specific requirements for a transfer. It would also be prudent to directly ask Cinnaholic's franchising team about the specific business qualifications they seek in a potential transferee to ensure a smooth transfer process.