What does the Cinnaholic franchisee acknowledge and agree to regarding the covenants and restrictions in Section 14 of the Franchise Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.6. Reasonable Restrictive Covenants. Developer acknowledges and agrees that (i) the covenants and restrictions in this Section 14 are reasonable, appropriate and necessary to protect the CINNAHOLIC® System, other franchisees and the legitimate interest of the Franchisor, and (ii) do not cause undue hardship on Developer or any of the other individuals required by this Section 14 to comply with the covenants and restrictions.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the franchisee, also referred to as the Developer, acknowledges and agrees that the covenants and restrictions outlined in Section 14 of the Franchise Agreement are reasonable, appropriate, and necessary. These measures are in place to protect the Cinnaholic system, other franchisees, and the legitimate interests of Cinnaholic itself.
Furthermore, the franchisee acknowledges that these covenants and restrictions do not impose undue hardship on the franchisee or any other individuals required to comply with them. This suggests that while the restrictions are designed to protect Cinnaholic's interests, they are also intended to be fair and not overly burdensome for the franchisee.
Section 14 likely includes clauses related to non-competition, non-solicitation, and confidentiality, which are common in franchise agreements. By agreeing to these terms, the franchisee commits to upholding the standards and protecting the proprietary information of the Cinnaholic brand. This acknowledgement is a standard practice in franchising, ensuring that franchisees understand and agree to the limitations and obligations placed upon them to maintain the integrity and competitiveness of the franchise system.