Where can I find the form of the Guaranty Agreement attached to the Development Agreement for Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
eloper also agrees that it and all of its employees and agents will take appropriate steps to protect Franchisor's confidential information from any unauthorized disclosure, copying or use. At any time upon Franchisor's request, and in any event upon termination or expiration of this Agreement, Developer will immediately return any copies of documents where there are materials containing confidential information and will take appropriate steps to permanently delete and render unusable any confidential information stored electronically.
- 14.4. Personal Covenants of Certain Bound Parties. As a condition to the effectiveness of this Agreement, and at the time Developer delivers this signed Agreement to Franchisor, each Bound Party of Developer must sign and deliver to Franchisor the Personal Covenants attached hereto as Exhibit C (the "Personal Covenants"), agreeing to be bound personally by all the provisions of Sections 14.1, 14.2 and 14.3 hereof. If there are any changes in the identity of any such Bound Party while this Agreement is in effect, Developer must notify Franchisor promptly and make sure the new Bound Party signs and delivers to Franchisor the Personal Covenants.
- 14.5. Agreements by Other Third Parties.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 41)
What This Means (2025 FDD)
According to the 2025 Cinnaholic FDD, the form of the Personal Covenants that certain parties must agree to is attached to the Development Agreement as Exhibit C. Specifically, as a condition for the Development Agreement to take effect, each Bound Party of the Developer must sign and deliver these Personal Covenants to Cinnaholic Franchising, LLC. These covenants bind them personally to the provisions outlined in Sections 14.1, 14.2, and 14.3 of the agreement. If the identity of any Bound Party changes while the agreement is active, the Developer must promptly inform Cinnaholic and ensure the new Bound Party signs and delivers the Personal Covenants.
The FDD also states that your spouse, and if you are not an individual, your shareholders, members, partners and managers, as applicable, and their spouses, must sign the Personal Covenants attached to the Franchise Agreement as Exhibit B and the Development Agreement as Exhibit C requiring them to comply with the confidentiality provisions of the Franchise Agreement and the Development Agreement, refrain from engaging in competitive businesses, and refrain from soliciting our employees and the employees of other CINNAHOLIC® franchisees.
These measures ensure that key individuals associated with the franchisee are legally bound to uphold the confidentiality and non-competition terms, protecting Cinnaholic's interests. The franchisor also retains the right to require other employees with access to confidential information to sign similar agreements. This comprehensive approach to restrictive covenants highlights the importance Cinnaholic places on safeguarding its system and proprietary information.