Does the Cinnaholic General Release survive the termination of the Cinnaholic franchise agreement?
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 and CINNAHOLIC® (or any subsidiary or affiliate of CINNAHOLIC®), individually or collectively has asserted, may have asserted or (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 those rights of the undersigned which cannot be waived under applicable state franchise laws nor is it intended to relieve CINNAHOLIC® or any other the Maryland Franchise Registration and Disclosure construed in accordance with the laws of the State of Georgia without regard to its conflicts of law provisions.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the General Release signed by the franchisee survives the termination of the franchise agreement. This means that even after the franchise agreement ends, the release remains in effect.
The General Release covers a broad range of potential claims. By signing it, the franchisee releases Cinnaholic from liabilities, damages, claims, demands, costs, expenses, debts, indemnities, suits, disputes, controversies, actions, and causes of action, whether known or unknown, that the franchisee may have against Cinnaholic. This includes claims arising from the franchise relationship, any agreements, or the Cinnaholic bakery itself.
This survival clause has significant implications for a prospective Cinnaholic franchisee. Even after the franchise agreement is terminated, the franchisee cannot pursue any claims against Cinnaholic that are covered by the General Release. This could limit the franchisee's legal options if disputes arise after the termination of the agreement. 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.