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What happens after the term of the Cinnaholic Development Agreement?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

ephone Listing Agreement | | E | Franchisee Information | | F | Guaranty Agreement | | G | State Specific Addenda |

Also attached to this Disclosure Document are Exhibit I the Franchisee Disclosure Questionnaire, Exhibit J the General Release.

Exhibit E

Guaranty Agreement

(See Attached)

GUARANTY AGREEMENT

In consideration of, and as an inducement to, the execution by CINNAHOLIC FRANCHISING,
LLC ("Franchisor") of that certain CINNAHOLIC FRANCHISING, LLC Market Development
Agreement, dated , 20 (as the same from time to time may be amended or modified, the
"Development Agreement"), by and between ("Developer") and
Franchisor,
the
undersigned,
for
the
term
of
the
Development
Agreement,
and
thereafter
until
all
obligations
of Developer
to
Franchisor
have
been
satisfied,
jointly
and
severally,
do
hereby
personally,
absolutely, and
unconditionally guarantee that Developer shall punctually pay and perform each and every undertaking,
condition, and covenant set forth in the Development Agreement.

Source: Item 22 — CONTRACTS (FDD pages 61–62)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, the undersigned guarantees the developer's obligations to Cinnaholic Franchising, LLC for the term of the Development Agreement, and thereafter until all obligations of the Developer to the Franchisor have been satisfied. This guarantee is made jointly and severally, personally, absolutely, and unconditionally, ensuring that the Developer will fulfill every undertaking, condition, and covenant outlined in the Development Agreement.

In practical terms, this means that individuals signing the guarantee are personally liable for the developer's financial and operational responsibilities to Cinnaholic, not only during the agreement's term but also until all debts and duties are completely fulfilled. This provision protects Cinnaholic by ensuring that there are multiple parties responsible for the developer's performance, reducing the risk of financial loss or non-compliance.

For a prospective Cinnaholic franchisee considering a development agreement, this clause highlights the importance of understanding the full scope of obligations and potential liabilities. Before signing, franchisees should carefully review the Development Agreement and seek legal counsel to fully grasp the implications of the personal guarantee. This ensures they are aware of the long-term commitment and potential financial risks involved in the development agreement with Cinnaholic.

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.
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