What sections of the Cinnaholic Franchise Agreement are the Bound Parties agreeing to be personally bound by when signing the Personal Covenants?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
eloper also agrees that it and all of its employees and agents will take appropriate steps to protect Franchisor's confidential information from any unauthorized disclosure, copying or use. At any time upon Franchisor's request, and in any event upon termination or expiration of this Agreement, Developer will immediately return any copies of documents where there are materials containing confidential information and will take appropriate steps to permanently delete and render unusable any confidential information stored electronically.
- 14.4. Personal Covenants of Certain Bound Parties. As a condition to the effectiveness of this Agreement, and at the time Developer delivers this signed Agreement to Franchisor, each Bound Party of Developer must sign and deliver to Franchisor the Personal Covenants attached hereto as Exhibit C (the "Personal Covenants"), agreeing to be bound personally by all the provisions of Sections 14.1, 14.2 and 14.3 hereof. If there are any changes in the identity of any such Bound Party while this Agreement is in effect, Developer must notify Franchisor promptly and make sure the new Bound Party signs and delivers to Franchisor the Personal Covenants.
- 14.5. Agreements by Other Third Parties.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, as a condition to the effectiveness of the Franchise Agreement, each Bound Party of the Developer must sign and deliver the Personal Covenants, agreeing to be personally bound by all the provisions of Sections 14.1, 14.2 and 14.3. If there are any changes in the identity of any such Bound Party while this Agreement is in effect, the Developer must notify Cinnaholic promptly and ensure the new Bound Party signs and delivers the Personal Covenants.
Specifically, the Bound Parties agree to be personally bound by sections relating to restrictive covenants. These include covenants not to compete during the term of the agreement, post-term non-competition agreements, and trade secrets and confidential information.
Bound parties also agree to sections regarding non-solicitation of employees. This means that while the agreement is in effect, and for one year after expiration or termination, the bound parties will not solicit or interfere with the employment relationships between Cinnaholic and its employees, or between other Cinnaholic franchisees and their employees. These measures are in place to protect Cinnaholic's business interests and maintain stability within the franchise network.