What information is included in Exhibit D regarding the ownership of the Cinnaholic Developer?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached hereto as Exhibit D is a description of the legal organization of Developer (whether a corporation, limited, liability company, partnership or otherwise), the names and addresses of each person or entity owning a 10% or greater interest in Developer (the "Principal Owners") and the percentage of such interest owned by such person or entity. Developer agrees to notify Franchisor in writing whenever there is any change in the organizational structure or ownership interest of Developer as set forth on Exhibit D. Franchisor may require each Principal Owner to execute the Guaranty Agreement attached hereto as Exhibit E.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Exhibit D provides details regarding the ownership structure of the franchise developer. This exhibit includes the legal organization type (corporation, LLC, partnership, etc.), the names and addresses of individuals or entities owning 10% or more of the developer, and the percentage of ownership held by each.
For a prospective Cinnaholic franchisee, this means that Cinnaholic wants to know exactly who owns and controls the entity that will be developing the franchise locations. This transparency helps Cinnaholic assess the stability and suitability of the developer.
The document also states that the developer is obligated to inform Cinnaholic in writing about any changes to the organizational structure or ownership interests as detailed in Exhibit D. Furthermore, Cinnaholic retains the right to require each principal owner to execute a Guaranty Agreement, which is included as Exhibit E. This agreement likely holds the principal owners personally liable for the developer's obligations under the franchise agreement, adding another layer of security for Cinnaholic.