Are transfers by devise, inheritance, or trust provisions subject to the same conditions as other transfers of the Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Any Transfer, including, without limitation, transfers by devise or inheritance or trust provisions, shall be subject to the same conditions for Transfers set forth in Section 13.4 below.
Franchisor shall not unreasonably withhold its consent to the Transfer of this Agreement or any ownership interest to the deceased or disabled Developer's or Equity Holder's spouse, heirs or members of his or her immediate family, provided all requirements of Section 13.4 have been complied with (except payment of the transfer fee, which shall not apply to such Transfers).
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, transfers of the franchise agreement or ownership interest due to death or disability, including transfers by devise, inheritance, or trust provisions, are subject to the same conditions as other transfers. This means that if a Cinnaholic franchisee passes away or becomes disabled, the transfer of the franchise to a beneficiary or heir must still meet the standard transfer requirements outlined in the franchise agreement.
The Cinnaholic franchise agreement states that any transfer due to death or disability must be to a party approved by Cinnaholic. While Cinnaholic will not unreasonably withhold consent to transfer the agreement or ownership to the deceased or disabled franchisee's spouse, heirs, or immediate family members, the requirements of Section 13.4 of the agreement must still be met. However, the transfer fee is waived for such transfers to family members.
This provision ensures that Cinnaholic maintains control over who operates its franchises, even in unforeseen circumstances like death or disability. The prospective franchisee should carefully review Section 13.4 of the franchise agreement to understand all the conditions and requirements for transfers, ensuring they are prepared for any future eventuality. This is a fairly standard clause in franchise agreements, as franchisors want to ensure brand consistency and operational standards are maintained even when ownership changes.