What is the relationship between the Cinnaholic Franchising, LLC and the Franchisor mentioned in the Guaranty Agreement?

According to the 2025 Cinnaholic Franchise Disclosure Document, Cinnaholic Franchising, LLC is the franchisor. This is evidenced by its inclusion as the named party in the Guaranty Agreement. The Guaranty Agreement is a contract where a third party (the guarantor) agrees to be responsible for the debts or obligations of another party (the franchisee) if that party fails to fulfill its obligations.

In the context of franchising, a guarantor might be required if the franchisee is a business entity with limited assets or a new entity without a substantial credit history. The guarantor, by signing the agreement, assures Cinnaholic that there is an individual or entity willing to back the franchisee's financial commitments. This reduces the risk for Cinnaholic, as it has recourse to the guarantor's assets if the franchisee defaults.

The FDD includes a sample Guaranty Agreement where Cinnaholic Franchising, LLC is explicitly named as a party to the agreement. This agreement is signed by the guarantors and Cinnaholic Franchising, LLC, solidifying the legal relationship and obligations of each party. The agreement also stipulates that if Cinnaholic pursues legal action under the Guaranty and prevails, the guarantors are responsible for reimbursing Cinnaholic's costs, including attorney's fees and court expenses.