What was the outcome of the *Cinnaholic Franchising, LLC v. Revel Systems Inc.* lawsuit?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
In Re: Cinnaholic Franchising, LLC v. Revel Systems Inc., Case No. 2023CV384522.
Franchisor filed suit against Revel Systems in the Superior Court of Fulton County, state of Georgia alleging that Revel fraudulently induced and then materially breached a Master Services Agreement (MSA), pursuant to which Revel was to supply a point-of-sale platform for the acceptance and processing of customer payment cards. Franchisor alleged that Revel knew of but did not disclose serious problems with its system, including frequent outages that left Revel clients unable to accept debit and credit cards from their customers. Franchisor sought damages in an undetermined amount and a judgment that the MSA is no longer in effect due to Revel's material breach. Revel counterclaimed alleging that Franchisor breached its obligation to deploy the Revel platform at a specific number of Franchisor locations by the end of 2022. The parties entered into a Confidential Settlement Agreement and Release of Claims, and this action was dismissed in August, 2024.
Source: Item 3 — LITIGATION (FDD pages 9–11)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic Franchising, LLC filed a suit against Revel Systems Inc. in the Superior Court of Fulton County, Georgia. The suit alleged that Revel fraudulently induced and then materially breached a Master Services Agreement (MSA) related to providing a point-of-sale platform for processing customer payments. Cinnaholic claimed that Revel was aware of but did not disclose serious issues with its system, including frequent outages that prevented clients from accepting debit and credit card payments. Cinnaholic sought an undetermined amount in damages and a judgment that the MSA was no longer in effect due to Revel's breach. Revel counterclaimed that Cinnaholic breached its obligation to deploy the Revel platform at a specific number of Cinnaholic locations by the end of 2022.
The document states that the parties reached a resolution through a Confidential Settlement Agreement and Release of Claims. Consequently, the court dismissed the action in August 2024.
For a prospective franchisee, this information indicates that Cinnaholic has pursued legal action against vendors when services did not meet expectations. While the specific terms of the settlement are confidential, the case's dismissal suggests that a resolution was reached that was agreeable to both parties. This demonstrates Cinnaholic's willingness to protect its interests and those of its franchisees by addressing issues with service providers through legal means.