What does the Cinnaholic Franchise Agreement state regarding undue hardship on the franchisee due to the restrictive covenants?

According to the 2025 Cinnaholic Franchise Disclosure Document, franchisees acknowledge that the restrictive covenants within the franchise agreement are reasonable and do not impose undue hardship. Specifically, Cinnaholic franchisees agree that these covenants are appropriate and necessary to protect the Cinnaholic system, other franchisees, and the legitimate interests of the franchisor.

These restrictive covenants typically include non-compete clauses that prevent franchisees from engaging in similar businesses during the term of the agreement and for a specified period afterward, usually within a certain radius of a Cinnaholic location. By agreeing that these covenants do not cause undue hardship, franchisees acknowledge that they have considered the limitations and find them acceptable for the benefits of being part of the Cinnaholic franchise system.

This acknowledgement is a standard practice in franchising, where franchisors implement restrictive covenants to protect their brand, trade secrets, and market share. Prospective Cinnaholic franchisees should carefully review these covenants to ensure they understand the restrictions and agree that they will not create undue hardship for their specific circumstances. It is advisable to seek legal counsel to fully understand the implications of these covenants before signing the franchise agreement.