What does a Cinnaholic franchisee acknowledge and agree to regarding the covenants and restrictions in Section 20 of the Franchise Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that (i) the covenants and restrictions in this Section 20 are reasonable, appropriate and necessary to protect the CINNAHOLIC® System, other CINNAHOLIC® franchisees and the legitimate interest of the Franchisor, and (ii) do not cause undue hardship on Franchisee or any of the other individuals required by this Section 20 to comply with the covenants and restrictions.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees acknowledge and agree that the covenants and restrictions outlined in Section 20 of the Franchise Agreement are reasonable, appropriate, and necessary. These measures are in place to protect the Cinnaholic system, other Cinnaholic franchisees, and the legitimate interests of the franchisor.
Specifically, the franchisee agrees that these covenants and restrictions do not impose undue hardship on them or any other individuals required to comply with them. This acknowledgment is a crucial part of the agreement, indicating that the franchisee understands and accepts the limitations and obligations set forth in Section 20.
Section 20 likely includes clauses such as non-compete agreements, confidentiality clauses, and other restrictions designed to safeguard Cinnaholic's business model and proprietary information. By agreeing to these terms, the franchisee commits to upholding these protections and operating their Cinnaholic bakery in a manner that aligns with the franchisor's standards and interests.