What is the document described as 'Collateral Assignment of Lease' for a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
As a condition to accepting a proposed site to be leased or subleased, Developer must sign, and cause the lessor and/or sublessor of the proposed site, to sign the Collateral Assignment of Lease attached hereto as Exhibit B.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the Collateral Assignment of Lease is a document that the developer (franchisee) must sign, along with the lessor or sublessor, as a condition of Cinnaholic accepting a proposed site for the bakery. This document is attached as Exhibit B to the agreement.
This requirement means that before Cinnaholic will approve a location, the franchisee needs to ensure that the property owner or current leaseholder is willing to sign this assignment. This assignment likely gives Cinnaholic certain rights or control over the lease in specific situations, such as if the franchisee defaults or fails to meet lease obligations.
Prospective franchisees should carefully review Exhibit B and understand the obligations and implications of the Collateral Assignment of Lease. It is important to discuss this document with a legal professional to fully grasp the franchisee's, franchisor's, and lessor's rights and responsibilities under the agreement.