Does the Cinnaholic franchise agreement address a franchisee's reliance on the franchise disclosure document, including any exhibit?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
6. Section 31512.1- Franchise Agreement Provisions Void as Contrary to Public Policy:
Any provision of a franchise agreement, franchise disclosure document, acknowledgement, questionnaire, or other writing, including any exhibit thereto, disclaiming or denying any of the following shall be deemed contrary to public policy and shall be void and unenforceable:
- (a) Representations made by the franchisor or its personnel or agents to a prospective franchisee.
- (b) Reliance by a franchisee on any representations made by the franchisor or its personnel or agents.
- (c) Reliance by a franchisee on the franchise disclosure document, including any exhibit thereto.
- (d) Violations of any provision of this division.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the franchise agreement addresses a franchisee's reliance on the franchise disclosure document, including any exhibit, but this is dependent on the state where the franchise is located.
For instance, the Cinnaholic addendum to the Market Development Agreement for California states that any provision in a franchise agreement, franchise disclosure document, acknowledgement, questionnaire, or other writing, including any exhibit thereto, disclaiming or denying reliance by a franchisee on the franchise disclosure document, including any exhibit thereto, shall be deemed contrary to public policy and shall be void and unenforceable.
Similarly, the addendum for Minnesota states that no statement, questionnaire, or acknowledgement signed by a franchisee can disclaim reliance on any statement made by Cinnaholic or its representatives. The Illinois addendum also states that no statement, questionnaire or acknowledgement signed by a franchisee can have the effect of disclaiming reliance on behalf of Cinnaholic. These stipulations protect franchisees by ensuring they cannot waive their right to claim they relied on the FDD when making their investment decision.
Prospective Cinnaholic franchisees should carefully review the state-specific addenda in Exhibit E of the FDD to understand their rights and protections regarding reliance on the Franchise Disclosure Document. This is particularly important in states like California, Illinois, Minnesota, and Virginia where specific provisions address this issue.