Does the Cinnaholic franchise agreement allow franchisees to disclaim reliance on any statement made by the franchisor, franchise seller, or other person acting on behalf of Cinnaholic?

According to the 2025 Cinnaholic Franchise Disclosure Document, the franchise agreement does not allow franchisees to disclaim reliance on statements made by Cinnaholic, franchise sellers, or individuals acting on Cinnaholic's behalf. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Cinnaholic or its representatives. This provision takes precedence over any conflicting terms in other franchise documents. This protection is reinforced by addenda for franchisees in Illinois and Virginia, which similarly prevent waivers of compliance with state franchise laws and disclaimers of reliance on the franchisor.

This means that prospective Cinnaholic franchisees are protected from being bound by agreements that force them to waive their rights to make claims based on misrepresentations or fraud. This ensures that franchisees can hold Cinnaholic accountable for statements made during the franchise sales process. The FDD emphasizes that franchisees should not be misled into thinking they are giving up their legal rights by signing certain documents.

For franchisees, this is a crucial safeguard. It allows them to seek legal recourse if they believe they were provided with false or misleading information that induced them to invest in a Cinnaholic franchise. This protection is particularly important in states like Illinois and Virginia, where specific addenda reinforce these rights due to state franchise laws. Franchisees should carefully review all documents and understand that they cannot waive their right to rely on the representations made by Cinnaholic and its representatives.