Does Cinnaholic make representations to prospective franchisees regarding Item 11?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
California's Franchise Investment Law (Corporations Code sections 31512 and 31512.1) states that any provision of a franchise agreement or related document requiring the franchisee to waive specific provisions of the law is contrary to public policy and is void and unenforceable. The law also prohibits a franchisor from disclaiming or denying (i) representations it, its employees, or its agents make to you, (ii) your ability to rely on any representations it makes to you, or (iii) any violations of the law.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise. See NASAA STATEMENT OF POLICY REGARDING THE USE OF FRANCHISE QUESTIONNAIRES AND ACKNOWLEDGMENTS. https://www.nasaa.org/wp-content/uploads/2022/11/sop-franchisequestionnaires.pdf
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, Cinnaholic is prohibited from disclaiming or denying representations made to prospective franchisees. Specifically, California's Franchise Investment Law states that any provision in a franchise agreement that requires a franchisee to waive specific provisions of the law is against public policy and therefore void.
This law also prevents Cinnaholic from denying representations made by the company, its employees, or agents to potential franchisees. It ensures that franchisees can rely on these representations and protects against violations of the law. This protection extends to reliance on the Franchise Disclosure Document (FDD) itself and any exhibits included.
Furthermore, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including claims of fraud. Franchisees are also protected from disclaiming reliance on statements made by Cinnaholic, its sellers, or anyone acting on its behalf. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement, reinforcing the importance of accurate and reliable information during the franchise sales process.