Where can I find the form of the Guaranty Agreement attached to the Franchise Agreement for Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit B
Personal Covenants
(See Attached)
PERSONAL COVENANTS
Each of the undersigned ("you") agree that:
- All capitalized terms used forth in that certain CINNAHOLIC but not defined FRANCHISING, in this Personal Covenants LLC FRANCHISE shall have the meaning set AGREEMENT, dated as of the day of , 20 (the "Franchise Agreement"), by and between CINNAHOLIC FRANCHISING, LLC ("Franchisor"), and ("Franchisee"). 2. You are a Bound Party. 3. As an inducement to Franchisor direct and personal benefits you will derive from the Franchise Agreement, you agree that: (i) read and understand all the provisions of Sections 2
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 41)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Exhibit B contains the Personal Covenants form, which appears to function as a guaranty agreement. This exhibit is attached to the Disclosure Document. The document states that certain parties associated with the franchisee, referred to as "Bound Parties," must sign and deliver these Personal Covenants to Cinnaholic Franchising, LLC as a condition of the Franchise Agreement's effectiveness. These Bound Parties are required to agree to be personally bound by specific provisions outlined in Sections 20.1, 20.2, and 20.3 of the agreement.
Prospective franchisees should carefully review Exhibit B to understand the obligations and liabilities they and their Bound Parties will be undertaking. It is important to identify who qualifies as a Bound Party and what the implications are for those individuals.
Franchisees should also note that if there are any changes in the identity of a Bound Party during the term of the Franchise Agreement, they must promptly notify Cinnaholic and ensure that the new Bound Party signs and delivers the Personal Covenants. This requirement ensures that Cinnaholic maintains consistent protection through these personal guarantees. Franchisees should consult with a legal professional to fully understand the scope and implications of the Personal Covenants and their obligations under the Franchise Agreement.