Does the Cinnaholic franchise agreement specify who determines whether a crime is 'likely to adversely affect the reputation of the CINNAHOLIC® System'?

According to Cinnaholic's 2025 Franchise Disclosure Document, the franchise agreement stipulates that if a franchisee or any of their owners are convicted of or plead no contest to a felony, a crime involving moral turpitude, or any other crime or offense that is 'likely to adversely affect the reputation of the CINNAHOLIC® System' and the goodwill associated with its marks, it constitutes a failure to comply with the agreement. However, the agreement does not explicitly state who makes the determination of whether a crime is 'likely to adversely affect the reputation of the CINNAHOLIC® System'.

Without a defined decision-maker, Cinnaholic franchisees face potential uncertainty. It is unclear whether the franchisor, another party, or some defined process will be used to assess the impact of a crime on the brand's reputation. This ambiguity could lead to disputes or inconsistent application of this clause.

Prospective franchisees should seek clarification from Cinnaholic regarding the process and criteria used to determine if a crime is 'likely to adversely affect the reputation of the CINNAHOLIC® System'. Understanding this process is crucial for assessing the potential risks associated with this clause in the franchise agreement.