What document must each Bound Party of a Cinnaholic franchisee sign and deliver 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.
If there are any changes in the identity of any such Bound Party while this Agreement is in effect, Franchisee must notify Franchisor promptly and make sure the new Bound Party signs and delivers to Franchisor the Personal Covenants.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, each Bound Party of a Cinnaholic franchisee must sign and deliver the Personal Covenants to the Franchisor. This document is attached as Exhibit B to the Franchise Agreement. The Personal Covenants agreement ensures that each Bound Party is personally bound by the provisions outlined in Sections 20.1, 20.2, and 20.3 of the agreement.
This requirement is a condition for the Franchise Agreement to become effective. The franchisee must ensure that all Bound Parties sign and deliver the Personal Covenants when the franchisee delivers the signed Franchise Agreement to Cinnaholic. Furthermore, if there are any changes to the Bound Parties during the term of the agreement, the franchisee is obligated to promptly notify Cinnaholic and ensure that any new Bound Party also signs and delivers the Personal Covenants.
This provision is in place to protect Cinnaholic's interests by ensuring that key individuals associated with the franchisee are legally bound by certain obligations, particularly those related to non-competition, non-solicitation, and confidentiality. By requiring the Personal Covenants, Cinnaholic aims to mitigate risks associated with the potential misuse of confidential information or unfair competition from individuals closely tied to the franchise operation.