When is it lawful for Cinnaholic to repurchase a franchisee's business during the term of the 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 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 Bakery (whether currently or of them), or any other prior or existing business relationship between any of the undersigned and CINNAHOLIC (or any subsidiary or affiliate individually or collectively has asserted, may have (or any of the 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 General Release is not intended as a waiver of those rights of the undersigned which cannot be waived under applicable state franchise laws nor is it intended to relieve CINNAHOLIC or any other person, Maryland Franchise Registration and Disclosure Law. This General Release shall be governed by and construed in accordance with the laws of the State of Georgia without regard to its conflicts of law provisions. WITNESS: | the operation of a CINNAHOLIC Bakery and/or the undersigned and CINNAHOLIC (or any subsidiary or affiliate of CINNAHOLIC), previously owned or operated by the undersigned or any of CINNAHOLIC), which the undersigned or any of them asserted or could have asserted against CINNAHOLIC aforementioned related parties) at any time up to the date of this General Release, including directly or indirectly, from liability imposed by the |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
Based on the 2025 Cinnaholic Franchise Disclosure Document addendums for Minnesota, Illinois, Virginia, and New York, there are specific stipulations that modify the standard Market Development Agreement. These addendums primarily focus on compliance with state laws regarding franchise rights, termination, and financial obligations.
Specifically, the Minnesota addendum highlights franchisees' rights concerning termination and non-renewal, requiring Cinnaholic to provide a 90-day notice of termination, with 60 days to cure, except in certain cases, as per Minnesota Statutes Section 80C.14. The Illinois addendum states that Illinois law governs the Franchise Agreement and outlines franchisee rights upon termination and non-renewal as set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
The Virginia addendum addresses the deferral of initial franchise fees until Cinnaholic has met its pre-opening obligations. The New York addendum ensures that franchisees retain all rights and causes of action arising from Article 33 of the General Business Law of the State of New York, preventing any waiver of these rights. These addendums collectively emphasize the importance of adhering to state-specific franchise laws and protecting franchisees' rights regarding termination, renewal, and financial obligations.
The general release document included in the FDD states that it is not intended as a waiver of those rights of the undersigned which cannot be waived under applicable state franchise laws nor is it intended to relieve Cinnaholic or any other person, Maryland Franchise Registration and Disclosure Law. This indicates that Cinnaholic cannot repurchase a franchisee's business if it involves waiving rights protected by state franchise laws.