Must the purchaser of a Cinnaholic franchise enter into an agreement to assume the Developer's obligations?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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. unless the law of your jurisdiction applies as provided for in Section 21 of the Development Agreement. this instrument effective as of the Effective Date of Print Name Print Name Date:, 20 Date:, 20 Print Name Print Name Date:, 20 Date:, 20 Print Name Print Name Date:, 20 Date:, 20 Print Name Print Name Date:, 20 Date:, 20 Print Name Print Name Date:, 20 Date:, 20 Print Name Print Name Date:, 20 Date:, 20#### Exhibit D
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the purchaser of a Cinnaholic franchise may be required to enter into a personal covenant agreement. As detailed in the provided excerpt, the "undersigned" (referred to as "you") must agree to certain terms outlined in the Personal Covenants section. These terms are linked to the Cinnaholic Franchising, LLC Market Development Agreement between the Franchisor and the Developer.
The agreement stipulates that the individual has read, understands, and will be personally bound by the obligations and covenants detailed in Sections 14.1, 14.2, 14.3 and 21.3 of the Development Agreement. These obligations are treated as if they were made directly by the individual to Cinnaholic Franchising, LLC. The document emphasizes that these obligations and covenants are considered fair and reasonable and will not deprive the individual of their livelihood.
Furthermore, the agreement specifies that if any part of Sections 14.1, 14.2, 14.3 or 21.3 of the Development Agreement is deemed unenforceable by a court, the remaining parts will still be valid. The court may modify the unenforceable part to make it enforceable, and if modification is not possible, the laws of the State of Georgia will govern, unless the law of the individual's jurisdiction applies as provided in Section 21 of the Development Agreement. This agreement is effective as of the date the Development Agreement is executed.