What is the Cinnaholic franchisee required to do regarding 'Bound Parties' signing the Personal Covenants?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
As a condition to the effectiveness of this Agreement, and at the time Franchisee delivers this signed Agreement to Franchisor, each Bound Party of Franchisee must sign and deliver to Franchisor the Personal Covenants attached hereto as Exhibit B (the "Personal Covenants"), agreeing to be bound personally by all the provisions of Sections 20.1, 20.2 and 20.3 hereof.
If there are any changes in the identity of any such Bound Party while this Agreement is in effect, Franchisee must notify Franchisor promptly and make sure the new Bound Party signs and delivers to Franchisor the Personal Covenants.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, as a condition of the Franchise Agreement becoming effective, the franchisee must ensure that each 'Bound Party' signs and delivers the Personal Covenants (Exhibit B) to Cinnaholic. These Personal Covenants commit the Bound Parties to be personally bound by the provisions outlined in Sections 20.1, 20.2, and 20.3 of the agreement.
If there are any changes to the identity of a Bound Party during the term of the Franchise Agreement, the franchisee is obligated to promptly notify Cinnaholic. The franchisee must also ensure that the new Bound Party signs and delivers the Personal Covenants to Cinnaholic.
This requirement ensures that key individuals associated with the franchisee are personally committed to upholding specific obligations, such as non-competition, non-solicitation, and confidentiality, as detailed in the referenced sections of the agreement. This protects Cinnaholic's interests and the integrity of the Cinnaholic system.