What must the Cinnaholic Franchisee agree to in order for the Franchisor to enter into the Franchise Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee desires to enter into a Cinnaholic Franchising, LLC Franchise Agreement (the "Franchise Agreement"); and
WHEREAS, Franchisor would not enter into the Franchise Agreement without Franchisee's agreement to enter into, comply with, and be bound by all the terms and provisions of this Telephone Listing Agreement;
WHEREAS, Franchisee desires to enter into a CINNAHOLIC FRANCHISING, LLC Franchise Agreement (the "Franchise Agreement"); and
WHEREAS, Franchisor would not enter into the Franchise Agreement without Franchisee's agreement to enter into, comply with, and be bound by all the terms and provisions of this Internet Listing Agreement;
- 14.4. Personal Covenants of Certain Bound Parties. As a condition to the effectiveness of this Agreement, and at the time Developer delivers this signed Agreement to Franchisor, each Bound Party of Developer must sign and deliver to Franchisor the Personal Covenants attached hereto as Exhibit C (the "Personal Covenants"), agreeing to be bound personally by all the provisions of Sections 14.1, 14.2 and 14.3 hereof. If there are any changes in the identity of any such Bound Party while this Agreement is in effect, Developer must notify Franchisor promptly and make sure the new Bound Party signs and delivers to Franchisor the Personal Covenants.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisor requires the franchisee to enter into, comply with, and be bound by all the terms and provisions of the Telephone Listing Agreement and the Internet Listing Agreement as a condition for Cinnaholic to enter into the Franchise Agreement.
Specifically, the Telephone Listing Agreement states that Cinnaholic Franchising, LLC would not enter into the Franchise Agreement without the franchisee's agreement to comply with all terms and provisions outlined in the Telephone Listing Agreement. Similarly, the Internet Listing Agreement requires the franchisee's agreement to its terms as a prerequisite for the franchisor to proceed with the Franchise Agreement.
Furthermore, as a condition to the effectiveness of the agreement, each Bound Party of the Developer must sign and deliver to Cinnaholic Franchising, LLC the Personal Covenants, agreeing to be bound personally by all the provisions of Sections 14.1, 14.2 and 14.3. If there are any changes in the identity of any such Bound Party while this Agreement is in effect, Developer must notify Franchisor promptly and make sure the new Bound Party signs and delivers to Franchisor the Personal Covenants.