What happens to the Cinnaholic development agreement in the event of death or disability of the developer?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Death or Disability of Developer.
Upon Developer's death or Disability (as such term is hereinafter defined), this Agreement or the ownership interest of any deceased or disabled shareholder, partner, member or other equity holder of the Developer or an Equity Holder must be Transferred to a party approved by Franchisor.
Any Transfer, including, without limitation, transfers by devise or inheritance or trust provisions, shall be subject to the same conditions for Transfers set forth in Section 13.4 below.
Franchisor shall not unreasonably withhold its consent to the Transfer of this Agreement or any ownership interest to the deceased or disabled Developer's or Equity Holder's spouse, heirs or members of his or her immediate family, provided all requirements of Section 13.4 have been complied with (except payment of the transfer fee, which shall not apply to such Transfers).
A "Disability" shall have occurred with respect to Developer if Developer, or, if Developer is a corporation, partnership or limited liability company, its controlling shareholder, partner, member or other equity holder, is unable to actively participate in its activities as Developer hereunder for any reason for a continuous period of six months.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the development agreement addresses the possibility of the developer's death or disability. In such an event, the agreement or the ownership interest of any deceased or disabled shareholder, partner, member, or other equity holder must be transferred to a party approved by Cinnaholic. This transfer is subject to the same conditions as other transfers outlined in the agreement.
Cinnaholic will not unreasonably withhold consent to the transfer of the agreement or any ownership interest to the deceased or disabled developer's spouse, heirs, or immediate family members, provided all other requirements for transfers are met. However, the transfer fee is waived in these specific cases.
A "Disability" is defined as the developer, or the controlling shareholder, partner, member, or other equity holder of the developer (if the developer is a corporation, partnership, or limited liability company), being unable to actively participate in the developer's activities for a continuous period of six months.