What specific actions are covered by the guarantee in the Cinnaholic Development Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| This General Release is made effective this day of , 20 In consideration for the grant by CINNAHOLIC FRANCHISING, LLC, a Georgia Limited Liability Company ("CINNAHOLIC®"), to the undersigned of certain rights in connection with the operation of a CINNAHOLIC bakery and/or the transfer or renewal thereof, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned, individually and collectively, hereby unconditionally release, discharge, and acquit CINNAHOLIC, its past and present subsidiaries and affiliates, and its and their shareholders, owners, directors, officers, managers, members, partners, employees, agents, representatives, successors and assigns, from any and all liabilities, damages, claims, demands, costs, expenses, debts, indemnities, suits, disputes, controversies, actions and causes of action of any kind whatsoever, whether known or unknown, fixed or contingent, regarding or arising out of any prior or existing franchise relationship, development agreement, franchise agreement or any other agreement executed by any of the undersigned and CINNAHOLIC (or any subsidiary or affiliate of CINNAHOLIC®), any CINNAHOLIC® Bakery (whether currently or previously owned or operated by the undersigned or any of them), or any other prior or existing business relationship between any of the undersigned and CINNAHOLIC® (or any subsidiary or affiliate of CINNAHOLIC®), which the undersigned or any of them individually or collectively has asserted, may have asserted or could have asserted against CINNAHOLIC® (or any of the aforementioned related parties) at any time up to the date of this General Release, including specifically, without limitation, claims arising from contract, written or oral communications, alleged misrepresentations, and acts of negligence, whether active or passive. This General Release shall survive the assignment or termination of any of the franchise agreements or other documents entered into by and between CINNAHOLIC and any of the undersigned. This General Release is not intended as a waiver of those rights of the undersigned which cannot be waived under applicable state |
|---|
| franchise |
| laws |
| nor |
| is |
| it intended to relieve CINNAHOLIC or any other person, directly or indirectly, from |
| liability |
| imposed |
| by |
| the |
| Maryland |
| Franchise |
| Registration |
| and |
| Disclosure Law. This General Release shall |
| be |
| governed |
| by and construed |
| in accordance |
| with |
| the |
| laws |
| of the State |
| of Georgia without regard |
| to |
| its |
| conflicts of law provisions. |
| WITNESS: |
| Corporate Name |
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
Based on the 2025 Cinnaholic Franchise Disclosure Document, the provided excerpts contain a 'General Release' agreement, but do not detail any specific guarantees related to the Development Agreement. The 'General Release' outlines the release, discharge, and acquittance of Cinnaholic from liabilities, damages, claims, and demands related to franchise relationships, development agreements, or other agreements. This release covers known and unknown claims arising from contracts, communications, misrepresentations, and negligence. However, it does not specify any performance guarantees made by Cinnaholic to the franchisee under the Development Agreement.
This means that while the document discusses a release of liability, it does not describe any guarantees that Cinnaholic provides to a developer. A prospective franchisee should be aware that signing the General Release would waive certain rights to make claims against Cinnaholic. The General Release does not waive rights that cannot be waived under applicable state franchise laws, nor does it relieve Cinnaholic from liability imposed by the Maryland Franchise Registration and Disclosure Law.
To fully understand the guarantees associated with the Cinnaholic Development Agreement, a prospective franchisee should carefully review the Development Agreement itself and consult with a legal professional. Specifically, the franchisee should ask Cinnaholic to provide details on what specific performance standards or assurances are included in the Development Agreement, and what recourse the franchisee has if Cinnaholic fails to meet those standards.