factual

Is the Cinnaholic General Release intended to relieve Cinnaholic from liability imposed by the Maryland Franchise Registration and Disclosure Law?

Cinnaholic Franchise · 2025 FDD

Answer 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 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: | the operation of a CINNAHOLIC Bakery and/or the undersigned and CINNAHOLIC (or any subsidiary or affiliate of CINNAHOLIC), previously owned or operated by the undersigned or any of CINNAHOLIC), which the undersigned or any of them asserted or could have asserted against CINNAHOLIC aforementioned related parties) at any time up to the date of this General Release, including directly or indirectly, from liability imposed by the | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | By: | | | Name: | | | Title: | | | | | | , Individually | | | | |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, the General Release is explicitly not intended to relieve Cinnaholic from liabilities imposed by the Maryland Franchise Registration and Disclosure Law. The document states that the release is not designed as a waiver of rights that cannot be waived under applicable state franchise laws. This means that franchisees in Maryland retain the protections afforded to them under Maryland's franchise laws, and Cinnaholic cannot use the General Release to circumvent those legal protections.

This provision ensures that Cinnaholic franchisees in Maryland are not forced to give up their statutory rights through the General Release. It protects franchisees from unknowingly waiving legal claims they might have against the franchisor under Maryland law. This is a standard practice in franchising, as many states have franchise-specific laws designed to protect franchisees, and franchisors typically cannot contract around these protections.

Prospective Cinnaholic franchisees in Maryland should be aware that this clause in the General Release preserves their rights under Maryland franchise law. They should consult with an attorney to fully understand their rights and obligations under both the franchise agreement and Maryland law. This ensures they are making an informed decision before investing in a Cinnaholic franchise.

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.