Does state law permit a Cinnaholic franchisee to terminate the franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
R: | | | CINNAHOLIC FRANCHISING, LLC | If an Individual: | | | By: Print Name: Title: | Signature: Print Name: If other than an Individual: | | | | By: Name: Title: | |Schedule 1 General Release
(See Attached)
GENERAL RELEASE
| 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 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 any CINNAHOLIC Bakery (whether currently or of them), or any other prior or existing business relationship between any of the undersigned and CINNAHOLIC (or any subsidiary or affiliate individually or collectively has asserted, may have (or any of the 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, 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: | the operation of a CINNAHOLIC Bakery and/or the undersigned and CINNAHOLIC (or any subsidiary or affiliate of CINNAHOLIC), previously owned or operated by the undersigned or any of CINNAHOLIC), which the undersigned or any of them asserted or could have asserted against CINNAHOLIC aforementioned related parties) at any time up to the date of this General Release, including directly or indirectly, from liability imposed by the |
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Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, state laws in Illinois, Minnesota, New York, Virginia, and Maryland affect the franchise agreement. Specifically, Illinois law, in conformance with Section 41 of the Illinois Franchise Disclosure Act, states that any condition that requires a person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
For Minnesota, Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) prohibit Cinnaholic from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. Also, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statute 80Cor (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
In New York, all rights enjoyed by the Cinnaholic franchisee and any causes of action arising in Franchisee's favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder will remain in force, it being the intent of this proviso that the non-waiver provisions of General Business Law Sections 687.4 and 687.5 be satisfied. For Virginia, no statement signed by a franchisee can waive any claims under any applicable state franchise law.
For Maryland, the 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. These stipulations suggest that franchisees in these states retain certain rights to terminate the franchise agreement under specific conditions as defined by their respective state laws.