What happens if a Cinnaholic franchisee or owner is convicted of a felony?

According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee's agreement can be terminated if the franchisee or any of the franchisee's owners are convicted of a felony. This also applies if they plead no contest to a felony, a crime involving moral turpitude, or any other crime or offense that is likely to adversely affect the reputation of the Cinnaholic system and the goodwill associated with its trademarks.

This provision gives Cinnaholic broad discretion to terminate the franchise agreement based on criminal activity of the franchisee or their owners, even if the crime is not directly related to the operation of the business. The key factor is whether the crime could negatively impact Cinnaholic's reputation. Moral turpitude is a vague term that could encompass a wide range of offenses, so prospective franchisees should be aware of this potential risk.

It is important for potential Cinnaholic franchisees to understand that any criminal conviction or plea, even for seemingly minor offenses, could jeopardize their franchise agreement. Franchisees should seek legal counsel to fully understand the implications of this clause and to ensure they are in compliance with all applicable laws and regulations.