Under the Cinnaholic agreement, is a Developer allowed to offer their interest for transfer at public auction?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
In no event shall Developer or any Equity Holder offer any interest in this Agreement or in Developer or any Equity Holder for Transfer at public auction, nor at any time shall an offer be made to the public to Transfer this Agreement or any interest in Developer or any Equity Holder, through the medium of advertisement, either in the newspapers or otherwise, without having first obtained the written consent of Franchisor to such advertisement or publication.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a Developer is not allowed to offer their interest for transfer at public auction. The agreement explicitly prohibits offering any interest in the agreement, the Developer, or any equity holder for transfer at public auction. Additionally, making a public offer to transfer the agreement or any interest in the Developer or any equity holder through advertisements in newspapers or other media is also prohibited without obtaining prior written consent from Cinnaholic. This restriction ensures that Cinnaholic maintains control over who becomes a Developer and prevents transfers to unsuitable parties through public auctions or general advertising. This is a fairly standard clause in franchise agreements, as franchisors typically want to carefully vet and approve any new franchisees or controlling parties to protect their brand and system standards.