What do the Personal Covenants attached to the Franchise Agreement and Development Agreement require of those who sign for a Cinnaholic franchise?

According to Cinnaholic's 2025 Franchise Disclosure Document, the Personal Covenants attached to both the Franchise Agreement and the Development Agreement place specific obligations on individuals associated with the franchisee. If the franchisee is an individual, their spouse must sign these covenants. If the franchisee is a business entity (like a corporation, LLC, or partnership), then the shareholders, members, partners, and managers, along with their spouses, are required to sign.

The core requirements of these Personal Covenants are threefold. First, signatories must comply with the confidentiality provisions outlined in both the Franchise Agreement and the Development Agreement, meaning they cannot disclose Cinnaholic's proprietary information. Second, they must refrain from engaging in any competitive businesses that would directly or indirectly compete with Cinnaholic. Finally, they are prohibited from soliciting Cinnaholic's employees or the employees of other Cinnaholic franchisees, preventing the poaching of trained staff within the franchise system.

This requirement ensures that Cinnaholic can protect its confidential information, prevent unfair competition, and maintain stability within its franchise network. By extending these obligations to spouses and key personnel, Cinnaholic aims to create a strong legal framework that minimizes the risk of information leaks or competitive threats. Prospective franchisees should carefully review Exhibits B and C of the Franchise Agreement to fully understand the scope of these Personal Covenants and their implications for all relevant parties.