Does the Cinnaholic General Release cover contingent claims?
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 of a CINNAHOLIC bakery and/or the 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 undersigned and CINNAHOLIC (or any subsidiary or affiliate of CINNAHOLIC®), any CINNAHOLIC® Bakery (whether currently or previously owned or operated by the undersigned or any of them), or any other prior or existing business relationship between any of the undersigned and CINNAHOLIC® (or any subsidiary or affiliate of CINNAHOLIC®), which the undersigned or any of them individually or collectively has asserted, may have asserted or could have asserted against CINNAHOLIC® (or any of the aforementioned related parties) at any time up to the date of this General Release, including 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
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the General Release includes a release of contingent claims. The General Release states that the franchisee is releasing Cinnaholic 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.
In practical terms, this means that a franchisee is waiving their right to sue Cinnaholic for any potential future claims that are not yet known or have not yet occurred at the time of signing the release. This could include claims that arise from events that have already happened but have not yet resulted in a loss or injury, or claims that are based on future events that are reasonably foreseeable.
It is important for a prospective Cinnaholic franchisee to carefully consider the implications of this General Release before signing it. Franchisees should consult with an attorney to fully understand the scope of the release and to determine whether it is in their best interests to sign it. Franchisees should also be aware that the General Release is governed by the laws of the State of Georgia, without regard to its conflicts of law provisions.