Does the Cinnaholic franchise agreement allow for the franchisee to seek treble damages under any circumstances?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
rstood, and executed this Addendum on | |------------------------------|----------------------------------------------------------------------------------------------------| | FRANCHISOR: | FRANCHISEE: | | CINNAHOLIC FRANCHISING, LLC | If an Individual: | | By: Print Name: Title: | Signature: Print Name: If other than an Individual: By: Name: | Title:_______________________________ (New York)
The following Addendum modifies and supersedes the Cinnaholic Franchising, LLC Franchise Agreement (the "Agreement") with respect to CINNAHOLIC® franchises offered or sold to either a resident of the State of New York or a non-resident who will be operating a CINNAHOLIC® franchise in the State of New York pursuant to the General Business Law of the State of New York, Article 33, Sections 680 through 695, as follows:
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- Notwithstanding any provision of the Agreement to the contrary, Franchisor will not make any assignment of the Agreement except to an assignee who, in Franchisor's good faith judgment, is willing and able to assume Franchisor's obligations under the Agreement.
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- Notwithstanding any provision of the Agreement to the contrary, all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder will remain in force, it being the intent of this proviso that the non-waiver provisions of General Business Law Sections 687.4 and 687.5 be satisfied.
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- Section 18.1 of the Agreement is amended by adding the following to the end of such section:
The indemnification contained in this Section 18.1 shall not apply to any claim by any third party arising out of a breach of this Agreement by Franchisor or any other civil wrong of Franchisor.
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- No new or different requirements imposed on Franchisee as a result of any changes made by Franchisor to Franchisor's Operations Manual or otherwise shall place an unreasonable economic burden on Franchisee.
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- Each provision of this Addendum will be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the General Business Law of the State of New York are met independently without reference to this Addendum.
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- To the extent this Addendum is inconsistent with any terms or conditions of the Agreement or the Exhibits or Schedules thereto, the terms of this Addendum shall govern.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
Based on the 2025 Cinnaholic Franchise Disclosure Document, the standard franchise agreement does not explicitly address whether a franchisee can seek treble damages. However, there are addenda for New York and Virginia that modify the standard agreement. The New York addendum states that all rights enjoyed by the franchisee and any causes of action arising in the franchisee's favor from the provisions of Article 33 of the General Business Law of the State of New York will remain in force, satisfying the non-waiver provisions of General Business Law Sections 687.4 and 687.5. The Virginia addendum states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive any claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor. These addenda suggest that franchisees in New York and Virginia retain certain rights and remedies available under state law.
For prospective Cinnaholic franchisees, this means that the availability of treble damages may depend on the specific state laws governing the franchise agreement, particularly in New York and Virginia. The standard agreement itself does not appear to preclude such remedies, and the addenda for New York and Virginia preserve certain franchisee rights and causes of action under state law.
It is important for potential franchisees to consult with legal counsel to understand the full scope of their rights and remedies, including the possibility of seeking treble damages, in their specific jurisdiction. Franchisees should also inquire with Cinnaholic about any other state-specific addenda or legal interpretations that may affect their ability to pursue such damages.