factual

Will the Cinnaholic Franchisor unreasonably withhold consent to transfer the agreement to a deceased or disabled Developer's spouse or immediate family?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor shall not unreasonably withhold its consent to the Transfer of this Agreement or any ownership interest to the deceased or disabled Developer's or Equity Holder's spouse, heirs or members of his or her immediate family, provided all requirements of Section 13.4 have been complied with (except payment of the transfer fee, which shall not apply to such Transfers).

Source: Item 23 — RECEIPT (FDD pages 62–269)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisor will not unreasonably withhold consent to transfer the franchise agreement or ownership interest to the spouse, heirs, or immediate family members of a deceased or disabled developer or equity holder. This is contingent upon compliance with the requirements outlined in Section 13.4 of the agreement. However, the transfer fee outlined in that section will not apply to such transfers.

This provision offers a degree of security for the franchisee and their family. In the event of death or disability, the franchisee's spouse, heirs, or immediate family members have the opportunity to take over the Cinnaholic franchise, provided they meet the other conditions for transfer. This can help preserve the value of the business and provide a source of income for the family.

It is important to note that while the transfer fee is waived, all other requirements of Section 13.4 must still be met. These requirements cover various aspects, such as the transferee's credit rating, moral character, business qualifications, agreement to assume the developer's obligations, and execution of a general release of claims against Cinnaholic. A prospective franchisee should carefully review Section 13.4 to fully understand these conditions and ensure their family members would be able to meet them in the event of a transfer due to death or disability.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.