Does the Cinnaholic Franchise Agreement acknowledge the reasonableness of the restrictive covenants?

According to Cinnaholic's 2025 Franchise Disclosure Document, the Franchise Agreement explicitly states that the franchisee acknowledges and agrees that the restrictive covenants are reasonable, appropriate, and necessary to protect the Cinnaholic system. This acknowledgement extends to protecting other Cinnaholic franchisees and the legitimate interests of the franchisor.

Specifically, the franchisee agrees that these covenants and restrictions do not impose undue hardship on them or any other individuals required to comply with the covenants. This acknowledgement is a standard component of franchise agreements, intended to ensure that franchisees understand and accept the limitations placed on their business activities, both during the term of the agreement and for a specified period after termination or transfer.

This clause is important because it can impact the enforceability of the restrictive covenants in court. By agreeing upfront that the restrictions are reasonable, a franchisee may face a higher burden if they later try to argue that the covenants are overly broad or create undue hardship. Prospective franchisees should carefully consider the scope and impact of these restrictive covenants, including non-compete, non-solicitation, and confidentiality provisions, before signing the Franchise Agreement.