Regarding Cinnaholic, what documents should I have personally reviewed before signing the franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
This Disclosure Document summarizes provisions of the development agreement, the franchise agreement and other information in plain language. Read this Disclosure Document and all agreements carefully.
If Cinnaholic Franchising, LLC offers you a franchise, it must provide this Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale. However, some state franchise laws, including New York, require Cinnaholic Franchising, LLC to provide this Disclosure Document to you at the first personal meeting held to discuss the franchise sale or at least 10 business days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
If Cinnaholic Franchising, LLC does not deliver this Disclosure Document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the appropriate state agency identified on Exhibit A.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, you should carefully read the Disclosure Document itself, the development agreement, and the franchise agreement before signing any binding agreements or making payments. The Disclosure Document summarizes key provisions of these agreements in plain language. Cinnaholic must provide the Disclosure Document to you at least 14 calendar days before you sign a binding agreement or make a payment. However, some state franchise laws, such as in New York, require Cinnaholic to provide the Disclosure Document at the first personal meeting to discuss the franchise sale or at least 10 business days before signing an agreement or making a payment.
It is important to note that if Cinnaholic does not deliver the Disclosure Document on time, or if it contains false or misleading statements or material omissions, it may constitute a violation of federal and state law. In such cases, you should report this to the Federal Trade Commission and the appropriate state agency.
In addition to the franchise agreement and disclosure document, Cinnaholic also requires that each Bound Party of the Franchisee must sign and deliver to Cinnaholic Franchising, LLC the Personal Covenants attached as Exhibit B. If there are any changes in the identity of any such Bound Party while this Agreement is in effect, Franchisee must notify Franchisor promptly and make sure the new Bound Party signs and delivers to Franchisor the Personal Covenants. Franchisee, if requested by Franchisor, shall cause each of its management and supervisory employees and other employees to whom disclosures of confidential information are made to execute a noncompetition, nonsolicitation and/or nondisclosure agreement in the form(s) prescribed by Franchisor from time to time.