Does the Cinnaholic franchise agreement address representations made by the franchisor or its personnel to a prospective franchisee?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Each of the undersigned hereby acknowledges having read, understood, and executed this Addendum on _______________________, 20____. FRANCHISOR: DEVELOPER: CINNAHOLIC FRANCHISING, LLC If an Individual: By:________________________________ Print Name:_________________________ Signature: ________________________________ Title:______________________________ Print Name: _______________________________ If other than an Individual: _________________________________________ By:______________________________________ Name:____________________________________
CINNAHOLIC FRANCHISING, LLC ADDENDUM TO MARKET DEVELOPMENT AGREEMENT (Maryland)
The following Addendum modifies and supersedes the Cinnaholic Franchising, LLC Market Development Agreement (the "Agreement") with respect to CINNAHOLIC franchises offered or sold to either a resident of the State of Maryland or a non-resident who will be operating a CINNAHOLIC franchise in the State of Maryland pursuant to the Maryland Franchise Registration and Disclosure Law, Md. Code Bus. Reg. §§ 14-201 through 14-233, as follows:
- The first sentence of Section 4 of the Agreement is deleted in its entirety and replaced with the following:
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.
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 representations made by Cinnaholic or its personnel to prospective franchisees, specifically within addenda for franchisees in California, Illinois, Minnesota, New York, Virginia and Maryland. These addenda modify the standard agreement to comply with state laws regarding franchise rights and disclosures. These addenda aim to protect franchisees from inadvertently waiving rights or disclaiming reliance on statements made by the franchisor.
For franchisees in California, the FDD states that any provision in the franchise agreement that disclaims representations made by Cinnaholic or its agents, or denies a franchisee's reliance on such representations, is void and unenforceable. This ensures that franchisees can hold Cinnaholic accountable for claims made during the franchise sales process.
For franchisees in Illinois, Minnesota, New York, Virginia and Maryland, the addenda state that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Cinnaholic or its representatives. This provision supersedes any conflicting terms in the franchise agreement, reinforcing the franchisee's ability to claim misrepresentation. These stipulations are particularly important for prospective franchisees as they reinforce the legal protections available at the state level, preventing Cinnaholic from using the franchise agreement to circumvent these protections.