In the Cinnaholic personal covenants, what is the defined meaning of 'Franchisor'?
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 term 'Franchisor' within the personal covenants is defined as CINNAHOLIC FRANCHISING, LLC. This definition is crucial because the personal covenants bind certain individuals (referred to as 'you') to specific obligations as an inducement for Cinnaholic to enter into either a Franchise Agreement or a Market Development Agreement.
The personal covenants ensure that these individuals are directly bound by certain sections of the Franchise Agreement or Market Development Agreement, as if they were directly contracting with Cinnaholic. This includes understanding and adhering to provisions related to non-competition, trade secrets, and confidential information. The individuals also acknowledge that their obligations are reasonable and won't deprive them of their livelihood.
This arrangement provides Cinnaholic with added protection, as it extends the contractual obligations beyond the franchisee or developer to include other bound parties, such as the franchisee's owners or managers. These individuals are essentially guaranteeing the franchisee's or developer's compliance with key provisions, offering Cinnaholic recourse directly against them if the franchisee or developer fails to meet their obligations. This is a common practice in franchising to ensure broader accountability and protect the franchisor's interests.