For Cinnaholic, what is the duration of the non-solicitation agreement after the expiration or termination of the franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2. Non-Solicitation of Employees. Developer and the Bound Parties agree that while this Agreement is in effect and for one year after expiration or termination of this Agreement for any reason, or following the date of a Transfer by Developer, they will not, directly or indirectly, solicit or attempt to solicit, or otherwise interfere with or disrupt the employment relationship between Franchisor and any of its employees or between any other CINNAHOLIC® franchisee and its employees.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the non-solicitation agreement lasts for one year after the expiration or termination of the franchise agreement. This agreement prevents the franchisee (referred to as "Developer" in the quote) and related parties from directly or indirectly soliciting or interfering with the employment relationships between Cinnaholic and its employees, or between other Cinnaholic franchisees and their employees.
This restriction is in place to protect Cinnaholic's workforce and maintain stability within the franchise system. By agreeing to this clause, a franchisee commits to not actively recruit or disrupt the employees of the franchisor or other franchisees for a period of one year after their franchise ends. This is a fairly standard practice in franchising, as it prevents departing franchisees from poaching valuable staff and potentially harming the Cinnaholic brand.
For a prospective Cinnaholic franchisee, this means that upon leaving the system, they cannot actively try to hire Cinnaholic employees or the employees of other franchisees for a year. This could impact their ability to start a competing business immediately after leaving the franchise, as they would need to find staff from other sources. It is important to understand the scope of this restriction and how it might affect future business plans after the franchise term.