Must a Cinnaholic franchisee sign a general release to renew the franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
R: | | | CINNAHOLIC FRANCHISING, LLC | If an Individual: | | | By: Print Name: Title: | Signature: Print Name: If other than an Individual: | | | | By: Name: Title: | |Schedule 1 General Release
(See Attached)
GENERAL RELEASE
| This General Release is made effective this day of, 20 In consideration for the grant by Cinnaholic Franchising, LLC, a Georgia limited liability company ("CINNAHOLIC"), to the undersigned of certain rights in connection with transfer or renewal thereof, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned, individually and collectively, hereby unconditionally release, discharge, and acquit CINNAHOLIC, its past and present subsidiaries and affiliates, and its and their shareholders, owners, directors, officers, managers, members, partners, employees, agents, representatives, successors and assigns, from any and all liabilities, damages, claims, demands, costs, expenses, debts, indemnities, suits, disputes, controversies, actions and causes of action of any kind whatsoever, whether known or unknown, fixed or contingent, regarding or arising out of any prior or existing franchise relationship, development agreement, franchise agreement or any other agreement executed by any of the any CINNAHOLIC Bakery (whether currently or of them), or any other prior or existing business relationship between any of the undersigned and CINNAHOLIC (or any subsidiary or affiliate individually or collectively has asserted, may have (or any of the specifically, without limitation, claims arising from contract, written or oral communications, alleged misrepresentations, and acts of negligence, whether active or passive. This General Release shall survive the assignment or termination of any of the franchise agreements or other documents entered into by and between CINNAHOLIC and any of the undersigned. This General Release is not intended as a waiver of those rights of the undersigned which cannot be waived under applicable state franchise laws nor is it intended to relieve CINNAHOLIC or any other person, Maryland Franchise Registration and Disclosure Law. This General Release shall be governed by and construed in accordance with the laws of the State of Georgia without regard to its conflicts of law provisions. WITNESS: | the operation of a CINNAHOLIC Bakery and/or the undersigned and CINNAHOLIC (or any subsidiary or affiliate of CINNAHOLIC), previously owned or operated by the undersigned or any of CINNAHOLIC), which the undersigned or any of them asserted or could have asserted against CINNAHOLIC aforementioned related parties) at any time up to the date of this General Release, including directly or indirectly, from liability imposed by the |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee may be asked to sign a general release to renew their franchise agreement. The document includes a sample "General Release" form that Cinnaholic may use. This release requires the franchisee to unconditionally release Cinnaholic from any and all liabilities, damages, claims, and demands related to any prior or existing franchise relationship or agreement. This includes claims arising from contracts, communications, alleged misrepresentations, and acts of negligence.
However, the General Release specifies that it is not intended as a waiver of rights that cannot be waived under applicable state franchise laws. It also states that it does not relieve Cinnaholic from liability imposed by the Maryland Franchise Registration and Disclosure Law. The release is governed by Georgia law, without regard to its conflicts of law provisions.
Notably, for franchises sold in Minnesota, Minnesota Rule 2860.4400(D) prohibits Cinnaholic from requiring a franchisee to assent to a general release, although a franchisee may enter into a release as part of a voluntary settlement of disputes. This suggests that the requirement to sign a general release may vary depending on the state in which the franchise operates. Prospective franchisees should carefully review the specific terms of the franchise agreement and any related documents, and consult with legal counsel to understand their rights and obligations under applicable state laws.