Can a Cinnaholic developer subfranchise their agreement without prior written consent?

According to Cinnaholic's 2025 Franchise Disclosure Document, a developer is restricted from subfranchising their agreement without obtaining prior written consent from Cinnaholic. Specifically, the agreement states that the developer cannot subfranchise, sell, assign, transfer, merge, convey, or encumber the agreement or any associated rights or obligations without the franchisor's explicit written approval. This restriction extends to any transfer of the agreement or its rights, whether it occurs by operation of law or through other means.

This requirement for prior written consent gives Cinnaholic control over who becomes involved in the franchise system. By requiring consent, Cinnaholic can vet potential subfranchisees to ensure they meet the brand's standards and are a good fit for the system. This protects the brand's reputation and the interests of other franchisees.

For a prospective Cinnaholic developer, this means they cannot independently decide to transfer their rights or obligations to another party. They must first seek and obtain Cinnaholic's approval, which may or may not be granted. This is a fairly standard clause in franchise agreements, designed to maintain consistency and quality within the franchise system. Failure to comply with this provision could result in a breach of the development agreement and potential termination.