What claims are excluded from the general release language required for renewal, sale, assignment, or transfer of a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| This General Release is made effective this day of, 20 In consideration for the grant by Cinnaholic Franchising, LLC, a Georgia Limited Liability Company ("CINNAHOLIC®"), to the undersigned of certain rights in connection with the operation transfer or renewal thereof, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned, individually and collectively, hereby unconditionally release, discharge, and acquit CINNAHOLIC®, its past and present subsidiaries and affiliates, and its and their shareholders, owners, directors, officers, managers, members, partners, employees, agents, representatives, successors and assigns, from any and all liabilities, damages, claims, demands, costs, expenses, debts, indemnities, suits, disputes, controversies, actions and causes of action of any kind whatsoever, whether known or unknown, fixed or contingent, regarding or arising out of any prior or existing franchise relationship, development agreement, franchise agreement or any other agreement executed by any of the any CINNAHOLIC ®facility (whether currently or previously of them), or any other prior or existing business relationship between any of the undersigned and CINNAHOLIC® (or any subsidiary or affiliate of CINNAHOLIC®), individually or collectively has asserted, may have asserted or (or any of the aforementioned related parties) at any time up to the date of this General Release, including specifically, without limitation, claims arising from contract, written or oral communications, alleged misrepresentations, and acts of negligence, whether active or passive. This General Release shall survive the assignment or termination of any of the franchise agreements or other documents entered into by and between CINNAHOLIC® and any of the undersigned. This those rights of the undersigned which cannot be waived under applicable state franchise laws nor is it intended to relieve CINNAHOLIC® or any other the Maryland Franchise Registration and Disclosure construed in accordance with the laws of the State of Georgia without regard to its conflicts of law provisions. | of a CINNAHOLIC® facility and/or the undersigned and CINNAHOLIC (or any subsidiary or affiliate of CINNAHOLIC), owned or operated by the undersigned or any which the undersigned or any of them CINNAHOLIC® could have asserted against General Release is not intended as a waiver of person, directly or indirectly, from liability imposed by Law. This General Release shall be governed by and |
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Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the general release required for franchise renewal, sale, assignment, or transfer does not waive rights that cannot be waived under applicable state franchise laws. Additionally, the release is not intended to relieve Cinnaholic from liability imposed by the Maryland Franchise Registration and Disclosure Law. This means that franchisees retain any protections or rights specifically granted to them by state franchise laws, and Cinnaholic remains responsible for adhering to the Maryland franchise regulations, regardless of the general release.
In practical terms, this exclusion ensures that franchisees are not forced to give up their legal rights under state franchise laws as a condition of renewing, selling, assigning, or transferring their Cinnaholic franchise. It also means that Cinnaholic cannot use the general release to avoid compliance with the Maryland Franchise Registration and Disclosure Law. This provides a level of protection for franchisees, particularly in states with strong franchise laws.
This type of exclusion is fairly standard in franchise agreements to ensure compliance with franchise-specific state laws and to protect franchisees' statutory rights. Prospective Cinnaholic franchisees should review their state's franchise laws to understand what specific rights are protected and cannot be waived by the general release. They should also consult with a franchise attorney to fully understand the implications of the general release and their rights as a franchisee.