Does the Cinnaholic General Release cover indemnities owed by Cinnaholic?
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 |
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Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the General Release that franchisees sign includes a release of Cinnaholic from "any and all liabilities, damages, claims, demands, costs, expenses, debts, indemnities".
This means that by signing the General Release, a Cinnaholic franchisee is essentially waiving their right to pursue claims against Cinnaholic for a wide range of issues, including indemnities. Indemnities typically involve one party compensating another for losses or damages. The release extends to Cinnaholic and its subsidiaries, affiliates, shareholders, owners, directors, officers, managers, members, partners, employees, agents, representatives, successors, and assigns.
However, the General Release does have some limitations. It is not intended to waive rights that cannot be waived under applicable state franchise laws. Additionally, it does not relieve Cinnaholic from liability imposed by the Maryland Franchise Registration and Disclosure Law. The General Release is governed by and construed in accordance with the laws of the State 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.