Does the Cinnaholic franchise agreement prohibit a franchisee from joining an association of franchisees?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU:
- (A) A PROHIBITION ON THE RIGHT OF A FRANCHISEE TO JOIN AN ASSOCIATION OF FRANCHISEES.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the state of Michigan prohibits certain unfair provisions that are sometimes included in franchise documents. One of these provisions, if present in the Cinnaholic franchise documents, is void and cannot be enforced against the franchisee: a prohibition on the right of a franchisee to join an association of franchisees.
This means that if a Cinnaholic franchisee operates in Michigan, the franchise agreement cannot legally prevent them from joining an association of other Cinnaholic franchisees. This protection ensures that franchisees in Michigan have the right to organize and collectively address issues or concerns with the franchisor.
For prospective Cinnaholic franchisees outside of Michigan, it's important to carefully review the franchise agreement to determine if any similar protections exist under the laws of their respective states. Franchisees should consult with legal counsel to understand their rights and obligations regarding franchisee associations.