What was the monetary award granted to Cinnaholic in the AAA Arbitration Case No. 01-23-0000-2264?

According to Cinnaholic's 2025 Franchise Disclosure Document, in the AAA Arbitration Case No. 01-23-0000-2264, Cinnaholic Franchising, LLC v. Calipto Foods, Inc. and Philip Edwards, Cinnaholic was awarded $42,234.22 in liquidated damages. The arbitration concluded around January 18, 2024. The case involved Cinnaholic bringing a claim for breach of contract against a terminated franchisee, Calipto Foods, Inc., and its guarantor, Philip Edwards.

Calipto Foods Inc. and Philip Edwards counterclaimed, alleging that Cinnaholic's claims were frivolous and sought unspecified damages and attorney's fees. However, the arbitrator ruled in favor of Cinnaholic on these counterclaims as well. This means that not only did Cinnaholic win the monetary award, but the former franchisee's claims against them were also dismissed.

For a prospective Cinnaholic franchisee, this litigation history indicates the brand's willingness to pursue legal action against franchisees who breach their agreements. It also shows that Cinnaholic has been successful in defending itself against claims made by franchisees. While litigation can be costly and time-consuming, this outcome suggests that Cinnaholic is prepared to protect its interests and enforce its franchise agreements.