What is the name of the Franchisor in the Cinnaholic Guaranty Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor chooses to proceed against the undersigned under this Guaranty, and Franchisor prevails, the undersigned shall reimburse Franchisor its costs and expenses associated with the proceeding, including its reasonable attorneys' fees, court costs and expenses.
IN WITNESS WHEREOF, each of the , 20 undersigned has hereunto affixed its signature this day of GUARANTORS: Agreed: (SEAL) CINNAHOLIC FRANCHISING, LLC Address: Its: Social Security No.: (SEAL) Signature Exhibit E-2 Address: Social Security No.: (SEAL) Address: Social Security No.: Social Security 140 (SEAL) Address: Social Security No.:
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the name of the Franchisor in the Guaranty Agreement is CINNAHOLIC FRANCHISING, LLC. This is explicitly stated in Exhibit E-2, which is referenced in the provided excerpt. The Guaranty Agreement is a legal document where a guarantor agrees to be responsible for the debts or obligations of the franchisee, ensuring that Cinnaholic Franchising, LLC has recourse if the franchisee defaults.
This agreement is crucial for Cinnaholic as it provides an additional layer of financial security. It is common practice in franchising to have a Guaranty Agreement, especially when the franchisee is a corporate entity or has limited assets. The guarantor, who is often a principal of the franchisee, commits personal assets to cover the franchisee's obligations.
For a prospective Cinnaholic franchisee, understanding the implications of the Guaranty Agreement is essential. If the franchisee fails to meet its financial obligations, the guarantor will be personally liable. This could include covering unpaid franchise fees, royalties, or other debts owed to Cinnaholic Franchising, LLC. Therefore, potential franchisees should carefully review the terms of the Guaranty Agreement and seek legal counsel to fully understand their obligations and potential risks.