In the Cinnaholic Personal Covenants, what is the required action of the undersigned regarding the Development Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
or on all Tenant's Trade Fixtures. For purposes of this Assignment, "Trade Fixtures" shall be defined as all merchandise, signs, fixtures, furniture, furnishings, partitions and equipment installed and owned by Tenant.
TENANT: CINNAHOLIC FRANCHISING, LLC < <insert Name of Tenant>></insert < <type of Signor>></type < <type of Signor>></type CONSENT OF LESSOR: < <type of Lessor>></type < <type of Signor>></type < <type of Signor>></type ATTEST: Secretary [CORPORATE SEAL]#### Exhibit C
Personal Covenants
(See Attached)
PERSONAL COVENANTS
Each of the undersigned ("you") agrees that:
- All capitalized terms used but not meaning set forth in that certain CINNAHOLIC CINNAHOLIC FRANCHISING, LLC ("Franchisor"), and ("Developer"). defined in this Personal Covenants shall have the FRANCHISING, LLC Market Development Agreement, dated as of the day of, 201 (the "Development Agreement"), by and between 2. You are a Bound Party. 3. to As enter an into inducement the to Development Agreement, consideration and of in the will direct derive and from personal the benefits Development you Agreement, agree that: you (i) provisions of Sections you have 14.1, read and 14.2, 14.3 understand and all 21.3 the of the Developer Development Agreement; (ii) you will be personally bound by all of the obligations and covenants of contained 21.3 in as Sections if 14.1, 14.2, such 14.3 obligations and covenants were and made reasonable and will not deprive you of your livelihood. and given personally by you directly to Franchisor; and (iii) such obligations and covenants are fair and 4. If any sentence, clause, paragraph, 14.3 or 21.3 of the Development Agreement is held severed and the remainder of Sections 14.1, 14.2, 14.3 and 21.3 shall remain in full force and effect. 5. These personal covenants shall be or combination of any of them in Sections 14.1, 14.2, by a court of competent jurisdiction to be unenforceable as applied to you, then such unenforceable sentence, clause, paragraph, or combination may be modified by such court to the extent necessary to render it enforceable, and if it cannot be so modified, it shall be governed by the internal laws of the State of Georgia, The undersigned hereby execute and deliver the Development Agreement.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, as an inducement to enter into the Development Agreement, the undersigned ('you') must take certain actions. Specifically, you must (i) read and understand all the provisions of Sections 14.1, 14.2, 14.3 and 21.3 of the Development Agreement. (ii) You will be personally bound by all of the obligations and covenants contained in Sections 14.1, 14.2, 14.3 and 21.3 as if such obligations and covenants were made and given personally by you directly to Franchisor; and (iii) such obligations and covenants are fair and reasonable and will not deprive you of your livelihood. The document also states that the undersigned must execute and deliver the Development Agreement. These personal covenants are effective as of the effective date of the agreement. Spaces are provided for the print name and date.
This means that individuals signing the Personal Covenants are agreeing to be legally bound by specific sections of the Development Agreement as if they were directly contracting with Cinnaholic. This is a common practice when the franchisee is a business entity (like an LLC or corporation) to ensure that the individuals behind the entity are also personally responsible for upholding certain key obligations.
The sections of the Development Agreement that the Bound Party is agreeing to be bound by are 14.1, 14.2, 14.3 and 21.3. A prospective franchisee should carefully review these sections of the Development Agreement to fully understand the obligations they are personally guaranteeing. These sections likely contain critical terms related to non-competition, confidentiality, and other key aspects of the franchise relationship. The personal guarantee ensures Cinnaholic has recourse against the individual's assets, not just the business entity's assets, in case of a breach.