What are the responsibilities of the Cinnaholic franchisee regarding the identification of Managers to the Franchisor?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.4.
Personal Covenants of Certain Bound Parties.
As a condition to the effectiveness of this Agreement, and at the time Franchisee delivers this signed Agreement to Franchisor, each Bound Party of Franchisee must sign and deliver to Franchisor the Personal Covenants attached hereto as Exhibit B (the "Personal Covenants"), agreeing to be bound personally by all the provisions of Sections 20.1, 20.2 and 20.3 hereof.
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.
- 20.5.
Agreements by Other Third Parties.
As a condition to Franchisor's execution of this Agreement, 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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if there are any changes in the identity of any Bound Party while the Franchise Agreement is in effect, the franchisee must promptly notify Cinnaholic and ensure the new Bound Party signs and delivers the Personal Covenants to Cinnaholic. This requirement ensures that all parties bound by specific obligations within the agreement are properly identified and committed.
Additionally, if requested by Cinnaholic, the franchisee must cause each of its management and supervisory employees, as well as other employees who receive disclosures of confidential information, to execute a noncompetition, nonsolicitation, and/or nondisclosure agreement in the form prescribed by Cinnaholic from time to time. This protects Cinnaholic's confidential information and competitive interests by ensuring that key personnel are legally bound to these restrictions.
These measures are typical in franchising to maintain brand consistency, protect trade secrets, and ensure that all responsible parties are aware of and compliant with their contractual obligations. A prospective Cinnaholic franchisee should be prepared to manage these administrative tasks related to personnel changes and compliance with Cinnaholic's requirements.