Under the Cinnaholic agreement, are the Developer and Bound Parties allowed to disrupt the employment relationship between another Cinnaholic franchisee and its employees?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2. Non-Solicitation of Employees. Developer and the Bound Parties agree that while this Agreement is in effect and for one year after expiration or termination of this Agreement for any reason, or following the date of a Transfer by Developer, they will not, directly or indirectly, solicit or attempt to solicit, or otherwise interfere with or disrupt the employment relationship between Franchisor and any of its employees or between any other CINNAHOLIC® franchisee and its employees.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, both the Developer and Bound Parties are restricted from disrupting the employment relationships within the Cinnaholic franchise network. Specifically, while the Franchise Agreement is in effect, and for one year after its expiration, termination, or transfer, the Developer and Bound Parties are prohibited from soliciting, attempting to solicit, or interfering with the employment relationships between Cinnaholic franchisees and their employees.
This restriction is designed to protect the stability of the Cinnaholic workforce and prevent franchisees from poaching employees from each other. This non-solicitation clause ensures that franchisees can invest in their employees without fear of losing them to other Cinnaholic locations. The term 'Bound Parties' typically includes the Developer's spouse, shareholders, members, partners, and managers, extending the reach of this restriction.
For a prospective Cinnaholic franchisee, this means they cannot actively recruit or otherwise disrupt the employment of individuals working at other Cinnaholic franchises during the term of their agreement and for one year afterward. Violation of this clause could result in legal action from Cinnaholic. Franchisees should ensure they understand who is included in the definition of 'Bound Parties' and communicate these restrictions clearly to those individuals.