What conditions must be met for a Cinnaholic franchisee to waive exemplary, punitive, or similar damages?

Based on the 2025 Cinnaholic Franchise Disclosure Document, a franchisee expressly and specifically waives any claims, demands, or damages arising from or related to the loss of Cinnaholic's name, the Marks (or any variation thereof) and the Cinnaholic system, and/or the loss of association with or identification of Cinnaholic Franchising, LLC, under the agreement. This waiver is specifically in relation to the sale, assignment, and disposition of the franchise by Cinnaholic.

This means that if Cinnaholic decides to sell the company, its assets, trademarks, or the entire Cinnaholic system to a third party, or undergoes significant financial restructuring, franchisees agree not to pursue claims for damages related to the change in brand ownership or association. This includes scenarios such as Cinnaholic going public, engaging in private placements, merging with or being acquired by another corporation, or undertaking a leveraged buyout.

This waiver is a significant point for potential franchisees to consider. It essentially means that franchisees accept the risk that the Cinnaholic brand and system could change hands, potentially altering the value or appeal of their franchise. While such changes are a normal part of the business world, franchisees are giving up their right to seek compensation for any perceived losses resulting from these changes. Prospective franchisees should carefully weigh this risk against the potential benefits of investing in a Cinnaholic franchise and seek legal counsel to fully understand the implications of this waiver.