Who is considered the 'Franchisee' in the Cinnaholic Guaranty Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, Franchisor hereby grants to Franchisee the non-exclusive right and license, and Franchisee undertakes the obligation, to develop and operate a CINNAHOLIC® Bakery and to use solely in connection therewith, the Marks and the CINNAHOLIC® System in accordance with the terms and conditions of this Agreement only at the Franchised Site, assuch term is hereinafter defined. Franchisee agrees to use the Marks and CINNAHOLIC® System, as they are changed, improved and further developed by Franchisor from time to time. Unless otherwise agreed to by Franchisor, Franchisee has 12 months from the Effective Date to complete the initial training as required by Section 14.1 and to commence operation of the Bakery. Franchisee must obtain Franchisor's written approval before commencing operation of the Bakery.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the 'Franchisee' is the individual or entity granted the non-exclusive right and license to develop and operate a Cinnaholic Bakery. This right is granted by the Franchisor during the term of the Franchise Agreement. The franchisee is obligated to operate the bakery and use the Marks and the Cinnaholic system in accordance with the terms and conditions outlined in the agreement, exclusively at the Franchised Site.
The franchisee is expected to use the Marks and Cinnaholic System as they are changed, improved, and further developed by Cinnaholic from time to time. Unless otherwise agreed to by Cinnaholic, the franchisee has 12 months from the Effective Date to complete the initial training as required by Section 14.1 and to commence operation of the Bakery. The franchisee must obtain Cinnaholic's written approval before commencing operation of the Bakery.
This definition is crucial as it establishes the core relationship and obligations between Cinnaholic and the individual or entity operating the franchise. It clarifies that the franchisee is responsible for adhering to Cinnaholic's standards and utilizing the established system and trademarks correctly. Prospective franchisees should carefully review the terms and conditions of the Franchise Agreement to fully understand their rights and obligations as a Cinnaholic franchisee.