What constitutes a 'Transfer' according to the Cinnaholic franchise agreement?
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)
Based on the 2025 Cinnaholic Franchise Disclosure Document, the provided excerpt discusses a 'General Release' related to the grant of rights in connection with the operation, transfer, or renewal of a Cinnaholic franchise. This release covers Cinnaholic, its subsidiaries, and related parties from liabilities, damages, claims, and actions arising from the franchise relationship.
The document mentions the 'grant by Cinnaholic Franchising, LLC...to the undersigned of certain rights in connection with the operation transfer or renewal thereof.' This suggests that a transfer involves Cinnaholic granting rights to another party to operate the franchise. However, the excerpt focuses on the release of liability rather than explicitly defining what actions constitute a transfer.
Because the excerpt is part of a general release, it does not provide a comprehensive definition of what constitutes a 'transfer' under the Cinnaholic franchise agreement. A prospective franchisee should refer to the specific section of the franchise agreement that defines 'transfer' to understand the conditions, requirements, and procedures for transferring ownership or operational rights of a Cinnaholic franchise.