Does Cinnaholic require me to acknowledge the risks associated with operating a franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
isequestionnaires.pdf
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- To the extent this Addendum is inconsistent with any terms or conditions of the Agreement or the Exhibits or Schedules thereto, the terms of this Addendum shall govern.
, 20 Each of the undersigned hereby acknowledges having read, understood, and executed this Addendum on CINNAHOLIC FRANCHISING, LLC If an Individual: Print Name: Print Name: If other than an Individual: By: Name: Title:(Illinois)
The following Addendum modifies and supersedes the Cinnaholic Franchising, LLC Franchise Agreement (the "Agreement") with respect to CINNAHOLIC® franchises offered or sold to either a resident of the State of Illinois or a non-resident who will be operating a CINNAHOLIC® franchise in the State of Illinois pursuant to the Illinois Franchise Disclosure Act of 1987, Ill. Comp. Stat. §§ 705/1 through 705/44, as follows:
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- Illinois law governs the Franchise Agreement(s).
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- Payment of Initial Franchise/Development Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition3) In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Your rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, franchisees in Illinois and Virginia are not required to sign any statement, questionnaire, or acknowledgment that would waive claims under state franchise law or disclaim reliance on statements made by Cinnaholic.
Specifically, the addendum for Illinois states that "No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor." This provision ensures that franchisees retain their legal rights and protections under Illinois franchise law, regardless of any documents signed during the franchise commencement.
Similarly, the addendum for Virginia includes a nearly identical clause: "No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor." This protects Virginia franchisees from unintentionally relinquishing their rights through acknowledgments or questionnaires.
These clauses in the Illinois and Virginia addenda supersede any conflicting terms in the standard franchise agreement, reinforcing the protection of franchisees' rights under state laws. Prospective Cinnaholic franchisees in these states should be aware of these provisions, as they ensure that they cannot inadvertently waive their legal protections during the franchise relationship.