Does the Cinnaholic franchisee acknowledge that acquired facilities may be near their Bakery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee further agrees and affirms that Franchisor has the right, now or in the future, to purchase, merge, acquire or affiliate with an existing competitive or noncompetitive franchise network, chain or any other business regardless of the location of that chain's or business' facilities, and to operate, franchise or license those businesses and/or facilities as CINNAHOLIC® Bakeries operating under the Marks or any other marks following Franchisor's purchase, merger, acquisition or affiliation, regardless of the location of these facilities, which Franchisee acknowledges may be proximate to any of its Bakeries.
With regard to any of the above sales, assignments and dispositions, Franchisee expressly and specifically waives any claims, demands or damages arising from or related to the loss of Franchisor's name, the Marks (or any variation thereof) and the CINNAHOLIC® System and/or the loss of association with or identification of CINNAHOLIC FRANCHISING, LLC, under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the franchisee acknowledges that Cinnaholic has the right to purchase, merge, acquire, or affiliate with existing competitive or noncompetitive franchise networks or any other business, regardless of the location of that chain's or business' facilities. The franchisee also acknowledges that Cinnaholic can operate, franchise, or license those businesses and/or facilities as Cinnaholic bakeries, even if these facilities are located near the franchisee's bakery.
This clause means that Cinnaholic franchisees accept the risk that the franchisor may acquire or merge with another bakery chain, potentially establishing a Cinnaholic location nearby. This could increase competition for the franchisee.
The franchisee specifically waives any claims, demands, or damages related to the loss of Cinnaholic's name, marks, or system, or the loss of association with Cinnaholic Franchising, LLC, resulting from these sales, assignments, and dispositions. This waiver protects Cinnaholic from legal action by franchisees who may feel negatively impacted by such changes.