Are Cinnaholic franchisees allowed to rely on representations made by Cinnaholic personnel or agents?

According to the 2025 Cinnaholic Franchise Disclosure Document, franchisees are generally allowed to rely on representations made by Cinnaholic or its personnel and agents. Specifically, any provision that disclaims or denies reliance on representations made by Cinnaholic or its representatives is considered against public policy and therefore unenforceable. This protection ensures that prospective franchisees can depend on the information provided to them during the franchise sales process.

This clause is designed to protect franchisees from misleading information or misrepresentations made by the franchisor's team. It prevents Cinnaholic from later denying the validity of claims or promises made to induce a franchisee to invest in the franchise. This is a crucial safeguard, as the franchise investment decision often relies heavily on the information provided by the franchisor during the pre-sale period.

However, it is important to note that franchisees also have a responsibility to conduct their own due diligence and verify the information provided. While franchisees can rely on the representations made, they should also consult with legal and financial advisors to ensure they fully understand the franchise agreement and the potential risks and rewards of investing in a Cinnaholic franchise. This clause does not excuse a franchisee from performing their own independent investigation.

Furthermore, the FDD includes a Franchisee Disclosure Questionnaire that acknowledges the limitations on claims a franchisee may make. This questionnaire is designed to determine if unauthorized statements or promises were made. Franchisees must complete this questionnaire the same day they sign the Development Agreement and/or Franchise Agreement and pay their development and/or franchise fee, but not on the same day as the Receipt for the Franchise Disclosure Document. This questionnaire serves as a check to ensure the franchisee understands the scope of authorized representations and any limitations on potential claims.