Does the Cinnaholic General Release apply to claims against Cinnaholic's past subsidiaries?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 the operation 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 ®facility (whether currently or previously of them), or any other prior or existing business relationship between any of the undersigned
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the General Release does apply to claims against Cinnaholic's past subsidiaries. The release explicitly includes "CINNAHOLIC®, its past and present subsidiaries and affiliates" among those being released from liabilities. This means that by signing the General Release, a franchisee agrees to waive any existing or future claims against Cinnaholic, including its past and present subsidiaries and affiliates.
This waiver covers a broad range of potential claims, including those related to prior or existing franchise relationships, development agreements, or any other agreements. It extends to claims arising from contracts, communications, alleged misrepresentations, and acts of negligence. The release encompasses both known and unknown claims, providing a comprehensive protection for Cinnaholic and its related entities.
However, the General Release does not waive rights that cannot be waived under applicable state franchise laws, nor does it relieve Cinnaholic from liability imposed by the Maryland Franchise Registration and Disclosure Law. The agreement is governed by the laws of Georgia, without regard to its conflicts of law provisions. Prospective franchisees should carefully review the General Release with legal counsel to fully understand its implications and how it affects their rights and potential claims against Cinnaholic and its subsidiaries.