In the *Cinnaholic Franchising, LLC v. Revel Systems Inc.* lawsuit, what did Revel counterclaim?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor filed suit against Revel Systems in the Superior Court of Fulton County, state of Georgia alleging that Revel fraudulently induced and then materially breached a Master Services Agreement (MSA), pursuant to which Revel was to supply a point-of-sale platform for the acceptance and processing of customer payment cards. Franchisor alleged that Revel knew of but did not disclose serious problems with its system, including frequent outages that left Revel clients unable to accept debit and credit cards from their customers. Franchisor sought damages in an undetermined amount and a judgment that the MSA is no longer in effect due to Revel's material breach. Revel counterclaimed alleging that Franchisor breached its obligation to deploy the Revel platform at a specific number of Franchisor locations by the end of 2022. The parties entered into a Confidential Settlement Agreement and Release of Claims, and this action was dismissed in August, 2024.
Source: Item 3 — LITIGATION (FDD pages 9–11)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic filed a suit against Revel Systems Inc. alleging that Revel fraudulently induced and then materially breached a Master Services Agreement (MSA) to supply a point-of-sale platform. Cinnaholic claimed Revel did not disclose serious problems with its system, including frequent outages. As a result, Cinnaholic sought damages and a judgment that the MSA was no longer in effect.
In response, Revel counterclaimed that Cinnaholic breached its obligation to deploy the Revel platform at a specific number of Cinnaholic locations by the end of 2022. This counterclaim indicates a dispute over the implementation and usage of Revel's point-of-sale system within Cinnaholic's franchise network.
The lawsuit between Cinnaholic and Revel Systems Inc. was eventually settled through a Confidential Settlement Agreement and Release of Claims, and the action was dismissed in August 2024. This resolution suggests that both parties reached a mutually acceptable agreement to resolve their disputes outside of court.