Does the Cinnaholic General Release cover claims related to a franchise agreement with Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Each of the undersigned hereby acknowledges having read, understood, and executed this Addendum on | |||
|---|---|---|---|
| , 20 | |||
| FRANCHISOR: | DEVELOPER: | ||
| CINNAHOLIC FRANCHISING, LLC | If an Individual: | ||
| By: Print Name: Title: | Signature: Print Name: If other than an Individual: | ||
| By: Name: Title: | Schedule 1 General Release |
(See Attached)
GENERAL RELEASE
| 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 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 Bakery (whether currently or of them), or any other prior or existing business relationship between any of the undersigned and CINNAHOLIC (or any subsidiary or affiliate individually or collectively has asserted, may have (or any of the specifically, without limitation, claims arising from contract, written or oral communications, alleged misrepresentations, and acts of negligence, whether active or passive. This General Release shall survive the assignment or termination of any of the franchise agreements or other documents entered into by and between CINNAHOLIC and any of the undersigned. This General Release is not intended as a waiver of those rights of the undersigned which cannot be waived under applicable state franchise laws nor is it intended to relieve CINNAHOLIC or any other person, Maryland Franchise Registration and Disclosure Law. This General Release shall be governed by and construed in accordance with the laws of the State of Georgia without regard to its conflicts of law provisions. WITNESS: |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to the 2025 FDD, the General Release provided by Cinnaholic covers claims related to the franchise agreement. The release requires franchisees to unconditionally release Cinnaholic and its affiliates from liabilities, damages, claims, and demands arising out of any prior or existing franchise relationship, development agreement, or franchise agreement. This includes claims arising from contracts, communications, alleged misrepresentations, and acts of negligence.
The General Release survives any assignment or termination of franchise agreements. However, it does not act as a waiver of 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.
This means that when transferring or renewing a franchise, Cinnaholic franchisees must sign a release that may prevent them from pursuing legal action against the franchisor for issues that occurred during the franchise term. Franchisees should carefully consider the implications and consult with legal counsel before signing such a release, especially if there are ongoing disputes or potential claims against Cinnaholic.