What is the deadline for the Cinnaholic franchisee to deliver the signed Franchise Agreement and Personal Covenants to the Franchisor?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
As a condition to the effectiveness of this Agreement, and at the time Franchisee delivers this signed Agreement to Franchisor, each Bound Party of Franchisee must sign and deliver to Franchisor the Personal Covenants attached hereto as Exhibit B (the "Personal Covenants"), agreeing to be bound personally by all the provisions of Sections 20.1, 20.2 and 20.3 hereof.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisee must deliver the signed Franchise Agreement and the Personal Covenants to Cinnaholic Franchising, LLC at the same time. Specifically, the FDD states that as a condition for the Franchise Agreement to become effective, each Bound Party of the franchisee must sign and deliver the Personal Covenants to Cinnaholic when the franchisee delivers the signed Franchise Agreement to Cinnaholic. The Personal Covenants are included as Exhibit B to the Franchise Agreement.
This means that all parties who are required to sign the Personal Covenants (typically owners or controlling parties of the franchisee entity) must do so and submit them together with the signed Franchise Agreement. Failing to submit both documents simultaneously could delay or prevent the franchise agreement from taking effect.
It is important for prospective Cinnaholic franchisees to identify all Bound Parties early in the process and ensure they are prepared to sign the Personal Covenants when the Franchise Agreement is ready for execution. This coordinated submission is a prerequisite for Cinnaholic to consider the agreement effective and move forward with establishing the franchise.