What consideration is given by Cinnaholic Franchising, LLC for the General Release?
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 consideration for the General Release involves Cinnaholic Franchising, LLC granting certain rights to the franchisee in connection with the operation, transfer, or renewal of a Cinnaholic facility. In exchange for these rights, and for other good and valuable consideration, the franchisee agrees to release Cinnaholic from any and all liabilities, damages, claims, and causes of action related to the franchise relationship. This release covers both known and unknown claims that the franchisee may have against Cinnaholic.
The General Release ensures that Cinnaholic is protected from potential legal disputes arising from the franchise agreement or any prior business relationship with the franchisee. This is a common practice in franchising, as it provides the franchisor with a degree of legal certainty and reduces the risk of future litigation. The release survives any assignment or termination of the franchise agreement, meaning that even after the franchise relationship ends, the franchisee is still bound by the terms of the release.
However, the General Release does not act as a waiver of rights that cannot be waived under applicable state franchise laws. Additionally, it does not relieve Cinnaholic from liability imposed by the Maryland Franchise Registration and Disclosure Law. The General Release is governed by and construed in accordance with the laws of the State of Georgia, without regard to its conflicts of law provisions. Prospective franchisees should carefully review the General Release with legal counsel to fully understand its implications and ensure their rights are protected.