What is considered a 'Transfer' of the Cinnaholic Franchise Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer shall not subfranchise, sell, assign, transfer, merge, convey or encumber (each, a "Transfer") this Agreement or any of its rights or obligations hereunder, or suffer or permit any such Transfer of this Agreement or its rights or obligations hereunder to occur by operation of law or otherwise without the prior express written consent of Franchisor.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a 'Transfer' of the Franchise Agreement encompasses several actions that a developer (franchisee) might undertake. Specifically, it includes subfranchising, selling, assigning, transferring, merging, conveying, or encumbering the agreement. This also extends to any such transfer of the agreement or its associated rights and obligations that occur by operation of law or otherwise.
This definition is crucial for prospective Cinnaholic franchisees because it clearly outlines the actions that require prior express written consent from the franchisor. If a franchisee attempts any of these actions without obtaining the franchisor's consent, they would be in violation of the franchise agreement, which could lead to penalties or termination of the agreement.
The requirement for franchisor consent ensures that Cinnaholic maintains control over who operates its franchises and upholds brand standards. It allows Cinnaholic to vet potential new franchisees and ensure they meet the company's criteria. Franchisees need to be aware of these restrictions and plan accordingly if they anticipate needing to transfer their franchise in the future.