For Cinnaholic franchises, what happens to provisions that deny reliance by a franchisee on representations made by the franchisor?

According to the 2025 Cinnaholic Franchise Disclosure Document, any provision that denies a franchisee's reliance on representations made by Cinnaholic or its agents is considered against public policy and will be void and unenforceable. This applies to any franchise agreement, franchise disclosure document, acknowledgment, questionnaire, or other written agreement.

This means that Cinnaholic franchisees are protected from clauses that might prevent them from claiming they relied on information provided by the franchisor when making their investment decision. This protection extends to representations made by Cinnaholic personnel or agents, as well as the information contained in the Franchise Disclosure Document itself.

Several states, including Illinois, Virginia, and Washington, have specific addenda that reinforce this protection. These addenda state that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. These addenda supersede any conflicting terms in other documents related to the franchise agreement, ensuring that franchisees in these states retain their right to claim reliance on the franchisor's representations.