In the Cinnaholic personal covenants, what agreement contains the capitalized terms not defined within the personal covenants themselves?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned ("you") agree that:
- All capitalized terms used forth in that certain CINNAHOLIC but not defined FRANCHISING, in this Personal Covenants LLC FRANCHISE shall have the meaning set AGREEMENT, dated as of the day of , 20 (the "Franchise Agreement"), by and between CINNAHOLIC FRANCHISING, LLC ("Franchisor"), and ("Franchisee").
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the personal covenants outline the agreements and obligations of individuals associated with the franchisee or developer. For franchisees, the capitalized terms used but not specifically defined within the personal covenants derive their meaning from the Cinnaholic Franchising, LLC Franchise Agreement. For developers, the capitalized terms used but not specifically defined within the personal covenants derive their meaning from the Cinnaholic Franchising, LLC Market Development Agreement.
These personal covenants are critical because they bind individuals (referred to as "Bound Parties") to the terms of either the Franchise Agreement or the Development Agreement, ensuring that obligations are met. These Bound Parties agree to be personally responsible for certain sections of these agreements, as if they were directly contracting with Cinnaholic. This arrangement is designed to provide Cinnaholic with an additional layer of security, ensuring compliance and protecting their interests.
Prospective franchisees and developers should carefully review both the personal covenants and the associated Franchise or Development Agreement to fully understand their obligations and the potential liabilities they may incur. Understanding the specific sections of the Franchise Agreement or Development Agreement referenced in the personal covenants is essential for anyone considering becoming a Cinnaholic franchisee or developer.