For how long after the Cinnaholic agreement expires or terminates are Bound Parties prohibited from soliciting employees?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
20.2. Non-Solicitation of Employees. Franchisee and the Bound Parties agree that while this Agreement is in effect and for one year after expiration or termination of this Agreement for any reason, or following the date of a Transfer by Franchisee, they will not, directly or indirectly, solicit or attempt to solicit, or otherwise interfere with or disrupt the employment relationship between Franchisor and any of its employees or between any other CINNAHOLIC® Franchisee and its employees.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, both the franchisee and any Bound Parties are restricted from soliciting employees. This restriction applies while the franchise agreement is active and extends for one year after the agreement's expiration or termination for any reason, including after a transfer by the franchisee. This prevents franchisees and related parties from disrupting the employment relationships of Cinnaholic and its other franchisees.
This non-solicitation clause means that for a full year after a Cinnaholic franchise closes or changes hands, the former franchisee cannot actively try to recruit or interfere with the employees of either Cinnaholic itself or any other Cinnaholic franchise location. This is designed to protect the stability of the workforce within the Cinnaholic system and prevent unfair competition through poaching of trained staff.
Bound Parties are defined earlier in the document as the franchisee's spouse, and, if the franchisee is not an individual, its shareholders, members, partners and managers, as applicable, and their spouses. Cinnaholic requires each Bound Party of Franchisee to sign and deliver to Franchisor the Personal Covenants attached agreeing to be bound personally by all the provisions of Sections 20.1, 20.2 and 20.3 hereof.